- Natural gas and helium producer Renergen (RLT) has completed a $6.72 million capital raise
- Renergen issued 5.6 million CDIs at a price of $1.20 per security
- The capital will replenish cash stores following the $2.3 million acquisition of the remaining stake in Tetra4 in December
- The additional 10 per cent interest in Tetra4 made Renergen the sole owner of the Virginia Gas Project
- Remaining funds from the placement will be used for further exploration at the project in South Africa
- Shares in Renergen are trading 3.39 per cent higher today, worth $1.22 each
Natural gas and helium producer Renergen (RLT) has completed a $6.72 million capital raising to replenish cash and fund exploration.
The placement consisted of the issue of 5.6 million CHESS Depository Interests (CDI) at an issue price of $1.20 per security. This equates to a 4.7 per cent discount on the 30 day volume weighted average price.
Funds from the placement will be used to replenish the R23 million (~AU$2.32 million) cash used to acquire the remaining 10 per cent stake in Tetra4.
Following the transaction on December 17, 2019, Renergen became the sole holder of the Virginia Gas Project in South Africa. On December 16, Renergen shared results of a gas strike at the project.
At a depth of 50 metres gas was intersected with a flow rate of 850,000 standard cubic feet per day with valves partially closed. The composition of this gas was 12 per cent helium and 75 per cent methane.
Renergen will also use funds from the placement to further exploration of this strike which exceeded company expectations.
“This has all the indications of being a game changer, and significantly bigger and better than we originally thought,” said CEO Stefano Marani.
The company is now planning further exploration at the Virginia Gas project.
“We are now reviewing the data and planning how to maximise the flow potential of this area of the production right, as this will inform the magnitude and timing of Phase II,” said the CEO.
“It remains the company’s ambition to become a globally significant producer of liquid helium, and the successful capital raise today allows us the extra flexibility to ensure that we consider all possible angles.”
Shares in Renergen are trading 3.39 per cent higher today, worth $1.22 each at 1:16 pm AEDT.