PERTH (miningweekly.com) – ASX-listed coal seam gas (CSG) hopeful Comet Ridge will raise some A$10-million in an institutional placement to fund the ongoing appraisal and predevelopment activities at its flagship Mahalo project, in Queensland.
The junior will place some 42.6-million shares, at 23.5c each to institutional and sophisticated investors, representing 6.9% of its current issued capital.
Comet Ridge told shareholders that the placement received strong support from both existing and new institutional investors.
“The company is now well positioned to continue pursuing its strategy of bringing material gas volumes into the East Coast market, as quickly as possible, from low-cost onshore assets,” said MD Tor McCaul.
Funds would also go towards Comet Ridge’s share of the costs for the Albany sandstone initial appraisal programme, in the Galilee basin, as well as exploration and appraisal works on its other permits.
Meanwhile, the company is hoping to raise a further A$3-million through a share purchase plan (SPP) at the same issue price as the institutional placement.
Eligible shareholders will be allowed to subscribe for up to A$10 000 worth of new shares, with some 42.5-million shares on offer.