Comet Ridge to raise A$24m
PERTH (miningweekly.com) – Natural gas developer Comet Ridge will raise A$24-million through a share placement to fund work at its Mahalo North project, in Queensland.
The ASX-listed company will place 137-million shares at a price of 17.5c each under the company’s existing placement capacity, with the offer price representing a 16% discount to Comet Ridge’s 15-day volume weighted average share price.
A$8.6-million of the funds raised will go towards core and pilot well drilling at the northern Maholo blocks, with Comet Ridge also providing A$8.2-million for loan repayments relating to the recently completed acquisition of APLNG’s 30% stake in the Mahalo gas project.
Funds would also be applied towards an initial reserve certification for Mahalo North, and for pre-production engineering, with A$5-million to go towards working capital.
“We are delighted by the support for the Placement and welcome a number of highly credentialed institutional investors to the register. Comet Ridge is now well funded to continue its forward momentum and achieve its objective to become a meaningful gas supplier from its Mahalo Gas Hub assets into the strong east coast gas market,” Comet Ridge MD Tor McCaul said.
“We look forward to controlling our own destiny through additional investment in the ground at our 100%-owned and -operated northern Mahalo blocks, to further expand our gas reserves and resources position. The field economic potential is exciting, with our recent Mahalo North 1 pilot well recording the highest flow rate from a single pilot well, exceeding 1.7-million cubic feet a day, in the Mahalo Gas Hub area.”
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