JSE-listed Renergen has raised $10-million in its secondary listing on Australia’s stock exchange, the emerging liquid helium and liquid natural gas (LNG) producer announced on Wednesday.
The company, which is developing South Africa’s first commercial LNG project, said it had raised $10-million through the issue of 12.5-million shares at $0.80 apiece. This was twice the minimum subscription.
“Renergen provides to investors a unique exposure to helium; a rare, finite commodity with strong demand and supply fundamentals,” MD and CEO Stefano Marani commented.
Renergen owns 90% of Tetra4 Proprietary, which, in turn, holds the first and only onshore petroleum production right in South Africa. The company is developing the Virginia gas project, in the Free State, which has one of the highest helium concentrations recorded globally.
Funds raised under the ASX initial public offering (IPO) will be used for further exploration and expansion of the Virginia project. This is in addition to the $40-million in debt funding that Renergen has secured from US-based development finance institution OPIC.
The Virginia project development currently includes drilling of additional production wells and a feasibility study for the commercialisation of the high concentration helium reserves contained in the project’s prospective sandstone deposit.
Helium has multiple applications across cryogenics (MRI machines), semi-conductor manufacturing, fibre optics and rocket launchers.
Meanwhile, Renergen also announced the appointment Dr David King as independent nonexecutive director. King previously held office as director of Sapex, Gas2Grid and Eastern Star Gas – companies that he also founded.