- Junior gas explorer Armour Energy (AJQ) is tapping investors for nearly $10 million for work at its Kincora Gas Project in Queensland
- The money will be raised through a share placement and entitlement offer, with new shares priced at 2.3 cents each
- This is an 18 per cent discount to the company’s last closing share price
- One attaching option will be issued for every two shares purchased as part of the capital raise, exercisable at five cents each by the end of February 2024
- Armour said the funds will be used to pay for work at the Kincora Gas Project, as well as make some interest payments and for general working capital
- Shares in Armour Energy were in a trading halt today, so it’s not yet certain how shareholders will react to today’s capital raise, but last traded for 2.8 cents each on Friday afternoon
Junior gas explorer Armour Energy (AJQ) is tapping investors for nearly $10 million for work at its Kincora Gas Project in Queensland.
The fresh money is set to be raised through two share placements and an entitlement offer, with all new shares priced at 2.3 cents a pop. This represents a discount of roughly 18 per cent to Armour Energy’s last closing price of 2.8 cents per share.
The first placement will be made only to sophisticated and professional investors to raise roughly $3.36 million. For mum and dad investors wanting to top up at the discounted price, however, a one-for-three entitlement offer is also being launched to raise another $4.53 million.
On top of this, Armour Energy said it has the option to take on an additional conditional placement to raise an extra $2.1 million — bringing the potential total amount of cash to be raised to $9.99 million.
As part of both the placement and the entitlement offer, new shareholders will receive one attaching option for every two shares purchased, exercisable at five cents each by the end of February 2024.
Armour said the new funds will be used to progress well intervention and a work program at the Kincora Project, as well as make some interest payments, and pay for some exploration work, and general working capital.
Kincora is just one of the several projects part of Armour’s exploration portfolio, which includes areas in the Bowen-Surat Basin, Isa Superbasin, South Nicholson, and Georgina Basins in Queensland and the McArthur Basin in the Nothern Territory.
The company is also taking on some oil exploration in Uganda and searching for gas and petroleum liquid in Victoria in a joint venture with Lakes Oil.
Shares in Armour Energy were in a trading halt today, so it’s not yet certain how shareholders will react to today’s capital raise. Shares last traded for 2.8 cents each on Friday afternoon.