Armour to Raise A$10 Million through Share Placement and Entitlement Offer
Brisbane-based Australian gas explorer Armour Energy Ltd. has commenced a capital raising program comprising of a share placement and an entitlement offer, to raise gross proceeds of approximately A$10.0 million.
The company plans to raise up to A$3.36 million through a placement of new ordinary shares and an additional A$4.53 million through an underwritten pro-rata non-renounceable entitlement offer. In addition, Armour also proposes to undertake a conditional placement to raise an extra A$2.1 million, bringing total potential proceeds to A$10.0 million.
The company will use the funds from the capital raising for the development of its Kincora gas project located in the Bowen-Surat Basin in Queensland. The project is one of the several in Armour’s exploration portfolio spread across the Northern Territory and north-west Queensland.
In addition to Kincora, Armour said that it intends to use part of the proceeds for the payment of interest and scheduled amortization reductions of the Amortising Notes for the balance of 2020, as well as for other exploration expenditures, meeting the costs of the capital raise, and for general working capital purposes.”All New Shares issued pursuant to the capital raising will rank equally with the Company’s existing shares on issue,” Armour said in a statement.
Bizzell Capital Partners and JB Advisory Partners are acting as joint lead managers for the placement. The entitlement offer has also been fully underwritten by Bizzell Capital Partners.