- Australian gas explorer and developer Kinetiko Energy (KKO) receives firm commitments from a private South African institution to raise $5 million
- The commitment comes from Phefo Power for a placement that will see roughly 56 million shares be issued at 9 cents each
- Phefo Power also has the option to subscribe for a further $R30 million ($2.6 million) worth of fully-paid ordinary shares
- Kinetiko will use the money to speed up its exploration strategy and joint venture obligations with the IDC of South Africa to co-develop a gas production field
- Shares in Kinetiko have ended the day up 4.28 per cent on the market to close at 9.8 cents
Australian gas explorer and developer Kinetiko Energy (KKO) has received firm commitments from a private South African institution to raise $5 million.
The commitment comes from Phefo Power for a placement that will see roughly 56 million fully-paid ordinary shares be issued at 9 cents each.
This represents a 3.2 per cent discount to Kinetiko’s last closing price and an 8.1 per cent discount to the 14-day volume-weighted average price.
Additionally, Kinetiko has granted Phefo Power the option to subscribe for a further $R30 million ($2.6 million) worth of shares.
Kinetiko will use the money to speed up its exploration strategy with a program to drill seven core wells currently underway.
The money will also go towards joint venture obligations with the Industrial Development Corporation (IDC) of South Africa to co-develop a gas production field.
“This is a very positive and exciting step as we continue to attract South African investment into Kinetiko,” Kinetiko CEO Nick de Blocq said.
“We now expect increased interest to follow the IDC and Phefo Power’s active votes of
confidence in our wider project, and the huge potential we have to become a substantial part of the solution to the energy paucity in South Africa.”
The first tranche of the placement is expected to settle on October 28 and the second will settle roughly one month after that.
Shares in Kinetiko ended the day up 4.28 per cent on the market to close at 9.8 cents.