Oilex Ltd Placement to New Cornerstone Shareholder (0292Z)
December 12 2017 - 2:00AM
UK Regulatory
TIDMOEX
RNS Number : 0292Z
Oilex Ltd
12 December 2017
ASX Announcement
12 December 2017
ASX: OEX
AIM: OEX
Agreement Secures Funding of up to A$2.35 million
Oilex Ltd (the Company) is pleased to announce that it has
entered into subscription agreements for a conditional capital
raising to secure funding of up to A$2.35 million (GBP1.33
million).
The funding is an important step for the Company following the
submission of its application for the PSC licence renewal extension
for Cambay and provides funding certainty to fast track
commencement of the 2018 work programme upon the licence
renewal.
Key Placement Terms
The placement, part of which is subject to certain conditions
set out below, will secure up to A$2.35 million before expenses
through the issue of up to 507,134,736 fully paid ordinary shares.
The placement will occur in two tranches structured as follows:
Tranche 1 The Company will issue 157,894,736 Shares at an
average issue price of A$0.0038 (0.215 pence) to raise up to A$0.6
million (GBP0.34 million) in accordance with its 15% placement
capacity under ASX Listing Rule 7.1; and
Tranche 2 The Company will issue approximately 349,240,000
shares at a price of A$0.005 (0.283 pence) to raise a further
A$1.75 million (GBP0.99 million)
Tranche 1 is due to settle in January, but no later than 31
January 2018. The issue of the Tranche 2 shares is subject to
shareholder approval, as well as the successful extension of the
Cambay PSC by the Government of India for a further ten years on or
before 31 March 2018. The Company anticipates holding its general
meeting to approve Tranche 2 in the first quarter of 2018.
The placees include new institutional investor, Republic
Investment Management Pte Ltd (Republic). Following the completion
of Tranche 1 Republic is anticipated to hold an approximate 7%
interest in Oilex, and will increase its holding to approximately
19.9% following the completion of Tranche 2.
Use of Funds
Funds raised from the placement are intended to primarily be
applied to initiate the delivery of a targeted 2018 work programme
within the Cambay PSC and for ongoing working capital requirements.
The 2018 work programme includes up to nine workover candidates and
two vertical wells at Cambay.
Commenting on the placing, Managing Director Mr Joe Salomon
said. 'We are very pleased to secure the support of a new
cornerstone shareholder. The funds raised will kick off our
targeted 2018 work programme to unlock potential value at Cambay.
We enter the new year with renewed momentum, a clear strategic
focus, and increasing financial strength - we are confident that
our work programme, with funding arriving in due course to support
it, will see the company start to deliver Cambay's potential value
for investors."
For and on behalf of the Board
Jonathan Salomon
Managing Director
For further information, please contact:
Investor AIM Broker AIM Nominated Media Enquires Media Enquiries
Enquiries Cornhill Adviser (UK) (Aus)
Oilex Capital Strand Hanson Vigo Communications Citadel-MAGNUS
Ltd Limited Limited Public Relations Michael
Joe Salomon Broker Nominated Patrick Weir
Managing Daniel Gee Adviser d'Ancona/Chris Email:
Director Email: Rory Murphy/Ritchie McMahon mweir@citadelmagnus.c
Email: danielg@cornhillcapital. Balmer Email: om
oilex@oilex.com.au com Email: patrick.dancona@vigo Tel: +618
Tel: +61 oilex@strandhanson.co comms.com 6160 4900
8 9485 Tel: +44 .uk chris.mcmahon@vigoco Australia
3200 20 3700 Tel: +44 mms.com
Australia 2500 20 7409 Tel: +44 20
UK 3494 7830 9700
UK
This information is provided by RNS
The company news service from the London Stock Exchange
END
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