Melbana Energy said it has accepted commitments to raise up to $2.1 million through a placement of 150 million fully paid ordinary shares at $0.014 per share to qualified institutional and sophisticated investors.
The placement is for the approximate number of shortfall shares from the Entitlement Offer undertaken by Melbana in August this year, it said.
Melbana has been able to issue these shares at a 40% price premium to the previous Entitlement Offer as the company has now progressed its projects in Cuba, New Zealand and most recently at Beehive, offshore Northern Australia.
Proceeds from the Placement will be used primarily for the company’s Cuba and New Zealand projects. The net proceeds will also be used for corporate costs and for general working capital purposes.
“Melbana is now well positioned to proceed with its portfolio of high impact exploration projects, commencing next month with the exciting drilling opportunity at Pukatea-1 onshore New Zealand, and with the preparatory activities for its planned drilling program of up to two wells in Cuba commencing mid-2018,” said CEO Peter Stickland.
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