Join our daily newsletter At The Bell to receive exclusive market insights
- Renergen (RLT) completes share placement, raising $10 million to support exploration at its Virginia Gas Project in South Africa
- Under the placement, 2.4 million CDIs were issued at $1.78 on the ASX and more than 3.1 million shares at R19.1 on the JSE
- Funds will go towards accelerating exploration at the project, following drilling results that delivered helium grades up to 12 per cent
- Money will also go towards feasibility studies for phase two work and restore working capital attributed to delays from COVID-19 lockdowns
- Shares are trading 1.06 per cent lower at $1.86 at 11:44 am AEST
Renergen (RLT) has completed a share placement, raising $10 million to support exploration at its Virginia Gas Project in South Africa.
The funds were raised through the issue of 2.4 million CDIs at $1.78 on the Australian Securities Exchange and more than 3.1 million shares at R19.1 on the Johannesburg Securities Exchange.
Subscriptions were received from exisiting and new domestic and international institutions as well as sophisticated investors.
Given the level of support received, RLT accepted bids for the full amount of available capacity.
As announced earlier this week, the company plans to use most of the money to accelerate exploration at its Virginia Gas Project, following drilling results that indicated helium grades up to 12 per cent.
Further, funds are set to progress the feasibility studies for phase two work and restore working capital attributed to delays from the COVID-19 enforced lockdowns in financial year 2021.
Commenting on the raise, CEO Stefano Marani said the company was just “scratching the surface” at Virginia. He said with a primary focus on hitting phase one and two milestones, the company wanted to “take the opportunity to strengthen” the company’s balance sheet and “accelerate exploration and development activities at Virginia”.
“Importantly, Virginia is shaping up to be a world-class project and the funds raised will allow us to efficiently advance our busy work schedule over the coming six months, as we work towards commencement of phase 1 production,” he said.
Shares were trading 1.06 per cent lower at $1.86 at 11:44am AEST.
