- Big Star Energy Ltd shares
fell16.67 per cent today following the announcement of the issue of 138,598,228 shares to raise $692,991 in a share placement
- The placement will take place in two tranches, and new shares will be
issuesat 0.5 cents per share
- Capital from the placement is planned to support spending at the company’s recently-acquired Percy Creek project, as well as to fund the acquisition of new leases in the United States and general working capital
- Big Star management says the company is now able to pursue its helium strategy
Big Star Energy Ltd shares fell 16.67 per cent today following the announcement of a $692,991 share placement to support expenditure at its Percy Creek Project in Wyoming, USA.
The oil and gas produce and explorer will issue the placement in two tranches. The first tranche will see Big Star issue roughly 66 million new shares at a price of 0.5 cents per share, and the second tranche will see the issue of an additional 73 million shares subject to shareholder approval.
Shares under the first tranche are set to be issued on Thursday 13 June. Capital from the placement is planned to support spending at the company’s recently-acquired Percy Creek project, as well as to fund the acquisition of new leases in the United States and general working capital.
Big Star Managing Director Joanne Kendrick said the company is pleased with the support from new and existing shareholders.
“I am excited that we can now pursue our helium gas strategy with vigour whilst we finalise plans for the Percy Creek seismic program next quarter. In particular, this will allow us to accelerate subsurface studies supporting the high-grading of additional helium prospects for targeted leasing,” Joanne said.
A Big Star executive director, Trent Spry, has agreed to subscribe for 3 million shares in the second tranche of the placement, subject to shareholder approval at an upcoming extraordinary general meeting.
Earlier this year, Big Star developed its helium gas exploration initiative and visited key areas of interest to outwork its helium strategy in the USA. Details of the company’s helium gas exploration initiative were revealed in its March quarterly report.
As at 1:40 pm AEST, Big Star shares were trading at 0.5 cents each, which is the same price as the shares issued under the placement. Big Star has a market cap of $1.66 million.