- Renergen (RLT) enters a trading halt while it plans a capital raise
- The natural gas and helium producer will use the money to conduct phase two studies at its Virginia Gas Project in South Africa
- The halt follows a recent discovery of helium at a 1.1 per cent concentrate at its Evander Exploration Rights prospect, part of the Virginia Gas Project
- The company will remain in the trading halt until Friday, June 25, at the latest
- Renergen’s shares last traded at $1.88 on Tuesday, June 22
Renergen (RLT) has entered a trading halt while it plans a capital raise.
While the energy stock hasn’t disclosed how much it’s planning to raise, it did say what the funds will be used for.
Renergen will use the money to complete phase two studies at the Virginia Gas Project in South Africa. The upcoming funding will also support its ongoing exploration program at the project and build up additional financial resources.
The trading halt follows the recently announced discovery of helium at a 1.1 per cent concentrate at its Evander Exploration Rights prospect which is part of the Virginia Gas Project.
The well in which the helium was found was drilled many years ago and had no surface infrastructure which led it to becoming waterlogged. Despite that, the gas is able to overcome the water pressure and is producing 5,000 standard cubic feet per day.
CEO Stefano Marani said: “Renergen is a little spoiled with the Virginia Gas Project and its high helium concentrations, but when you think about it, 1.1 per cent is still an astoundingly high number.
“Importantly and a major advantage for Renergen is having an onshore energy asset so close to Johannesburg, as it opens up some very interesting opportunities.”
The company will remain in the trading halt until Friday June 25 at the latest.
Renergen’s shares last traded at $1.88 on Tuesday, June 22.