Total
0
Shares
Buru Energy (ASX:BRU) - Executive Chairman, Eric Streitberg - The Market Herald
Executive Chairman, Eric Streitberg
Source: The Market Herald
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Buru Energy (BRU) is set to raise $20 million through a placement and share purchase plan
  • The energy stock received firm commitments from investors to raise $15 million through a placement
  • Shares will be issued at 15 cents — representing a 25 per cent discount to the last closing traded price
  • Another $5 million will be raise through a share purchase plan that will be open from May 6
  • The money will be used to fund exploration at Buru's prospects in WA's Canning Basin and to support working capital
  • Company shares have dropped 15 per cent and are trading at 17 cents

Buru Energy (BRU) has received commitments from institutional, professional and sophisticated investors to raise $15 million through a share placement.

The placement shares will be issued at 15 cents per share which represents a 25 per cent discount to the last closing traded price and a 23.6 per cent discount to the five-day volume-weighted average price (VWAP).

"This is the first capital raising undertaken by Buru outside our existing shareholder base since 2014 and we would like to warmly welcome those new shareholders who have supported the placement," Executive Chairman Eric Streitberg said.

The energy stock received higher bids for the placement, however, it had to be capped at $15 million to give existing shareholders the opportunity to participate in a share purchase plan.

On May 6, Buru will open a share purchase plan to raise an additional $5 million. Eligible shareholders may subscribe for up to $30,000 worth of shares at 16 cents per share. The offer price represents an 18.53 per cent discount to the five-day VWAP.

Buru Energy reserves the right to scale back applications under the share purchase plan if the demand exceeds $5 million.

The company will use the $20 million to fund exploration and development work at its prospects in the Canning Basin in Western Australia. The money will also support Buru's existing cash reserves.

"The funds raised will put Buru in a strong financial position to execute its exploration and development strategy within its Canning Basin joint ventures as part of our 2021 program and beyond, as well as to pursue new business opportunities," Eric concluded.

Company shares have dropped 15 per cent and are trading at 17 cents at 2:05 pm AEST.

BRU by the numbers
More From The Market Herald
Lithium Energy (ASX:LEL) - - The Market Herald

" Lithium Energy (ASX:LEL) gets ready to mobilise to Solaroz

Lithium Energy (LEL) is preparing to mobilise to the Solaroz Lithium Project in Argentina to undertake exploration works.
The Market Herald Video

" State Gas (ASX:GAS) completes $8m placement

State Gas (GAS) has completed an $8 million placement to conduct exploration in Queensland.
Senex Energy (ASX:SXY) - CEO and MD, Ian Davies - The Market Herald

" Senex Energy (ASX:SXY) signs gas sales agreement with 29Metals

Senex Energy (SXY) has penned a three-year gas sales agreement for 29Metals’ Capricorn Copper mine in Queensland.

" Stonehorse Energy (AXS:SHE) hits 1238 BOE daily production

Stonehorse Energy (SHE) shares enjoyed a temporary burst into the green on the back of an update from the company’s Jewell Well in