Whitebark Energy Ltd (ASX:WBE) has launched a capital raise worth $1.5 million to expedite development of two geothermal energy assets in Queensland through to final investment, in addition to development of its more advanced gas project in Western Australia.
The company will conduct a placement directed towards sophisticated and professional
investors, and follow this up with a non-renounceable entitlement offer to eligible shareholders.
Binding commitments of $500,000 have already been received for the former, through an institutional placement of 41,666,667 new fully paid shares which will be issued at A$0.012, with ordinary shareholders also given the opportunity to apply for ordinary shares at the same price, in order to raise another A$1 million.
According to the entitlement offer, one ordinary share will be offered for every three shares held by eligible shareholders at the same price, with the goal of raising up to A$1,011,751, with the closing date for acceptances under this offer being set for July 26.
The offered share price represents a 19 percent discount to the five-day weighted average trading price of approximately $0.015 reported on the June 7, 2024, as well as a13 percent discount to the last closing price of approximately $0.014 on the same date.
The capital raise will go towards Whitebark’s progression of assets EPG2037 and EPG 2040, located in southeast and southwest Queensland respectively, with these representing the geothermal energy sector which has been the company’s focus since the beginning of 2024, as part of a strategic review.
In particular, Whitebark is aiming for early commerciallity of hydrogen production in both assets, while also progressing development at Warro – another geothermal asset in WA’s Perth Basin.
Part of the strategic review also involved reassessment of Whitebark’s Canadian asset, Wizard Lake, with the company also announcing today that its subsidiary Rex Energy had signed a purchase and sales agreement through which Conflux Energy Corp would assume a 90 percent interest in the operations there.
According to the transaction, Conflux would also take on all outstanding contingent liabilities in Rex Energy, totalling CAD $1.44 million, and would also give Whitebark a ‘free carry’ on Rex’s 10 percent working interest for the initial capital required to bring the field back into full production.
The Wizard Lake oil field- located in the Western Canada Sedimentary Basin – has been offline since January due to extreme weather conditions and operational issues.
At 13:44 AEST, Whitebark was trading at one cent, a fall of 28.57 percent since the market opened.