Placement & Unsecured Loan To Raise A$19.2 Million
Sydney, Dec 27, 2012 AEST (ABN Newswire) - Buccaneer Energy Limited (
ASX:BCC) (PINK:BCGYF) is pleased to advise that on the evening of the 24 December 2012 it executed binding agreements for the issue of 198,000,000 shares in the Company at an issue price of $0.047 to raise a total of $9.3 million ("the Placement") and for an unsecured loan of $9.9 million ("the Loan"), for total funds raised of $19.2 million (US$20.0 million).
The issue price of $0.047 is a 13.0% discount to the last closing price.
The Placement will be undertaken under the Company's 15% limit allowed under ASX Listing Rule 7.1 and therefore does not require shareholder approval, the Placement is scheduled to close on 31 December 2012. The Placement and Loan were subscribed equally by three high net worth Asian based investors with a history of investing in and operating businesses in the energy sector. Each subscriber will have a 4.3% interest in the Company.
The Loan is repayable 12 months after draw down, with draw down expected in mid January 2013.
The proceeds of the Placement and Loan will be used for the following purposes:
- Support the Company's offshore and onshore Cook Inlet exploration program;
- Additional contributions to Kenai Offshore Ventures, LLC that will be used to finalise the modifications and upgrades to the Endeavour jack-up rig; and
- Costs of the issue and general working capital.
Refinance of Existing Facilities
The Company is in the final stages of a refinance of the existing secured US$20.0 M term loan that expires 16 January 2013 and US$30.0 million ACES Revolver that expires in December 2013 with a new facility with a substantial longer maturity date.
The new $9.9 million (US$10.3 million) unsecured loan is additional to the existing term loan and the anticipated new facility when the refinance is completed.
It is anticipated that the refinancing of the existing US$20.0 million term loan will be structured as a reserve based lending facility with a borrowing based determined upon proved developed producing ("PDP") reserves at the Company's 100% owned Kenai Loop project. Dependent on the successful testing of the Kenai Loop # 4 well the Company would expect that the borrowing base available for draw down will substantially increase thereby making more funds available for the development of the Company's Kenai Loop project.
Buccaneer Director Dean Gallegos said:
"The Company has had a substantial amount of interest from both existing shareholders and new investors and believes that the combination of both equity and unsecured loans both strengthens the Company's balance sheet and limits dilution of existing shareholders.
We are about to embark on a parallel drilling program for both our onshore and offshore projects and we see the next 6-12 months as an exciting one for the Company and its shareholders"
View the announcement here:
http://media.abnnewswire.net/media/en/docs/ASX-BCC-714173.pdf
Contact
Buccaneer Energy Limited
T: +61-2-9233-2520
F: +61-2-9233-2530
WWW: www.buccenergy.com
| ||
|
