Renergen raised around 107.51 million rand on the Australian Securities Exchange and the JSE through the placement of shares
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Renergen, the emerging national producer of natural gas and helium, said on Friday it had raised around $ 10 million (Rand 107.51 million) on the Australian Securities Exchange and the JSE through the successful placement of shares, the product to be used to accelerate exploration at its Virginia Gas project.
Renergen issued a total of over 5.63 million new shares, with 2.45 million peak custodian interest (CDI) at A $ 1.78 per security and 3.18 million shares at 19 R 10 per share.
This represented a 9.5% discount from Renergen’s volume weighted average price (VWAP) for the 30 days before the issue price was agreed on the JSE.
The group said the placement was underwritten by existing and new national and international institutions and sophisticated investors.
Renergen was successfully listed on the Australian Stock Exchange in June 2019 and has been listed on the Alternative Exchange (AltX) since 2015.
General Manager Stefano Marani said he was extremely proud of the continued success of his exploration program at Virginia, which provided world-class helium grades.
“We are only scratching the surface of Virginia’s potential and, focusing primarily on achieving our Phase 1 and 2 milestones, we wanted to take the opportunity to strengthen our balance sheet and accelerate exploration activities. and development in Virginia.
The Virginia Gas project will be the primary beneficiary of these funds, as the group will use the majority of the funds to accelerate exploration of its 100% owned Virginia Gas project.
This follows exceptional drilling results that provided helium grades of up to 12 percent helium.
The group said Virginia currently has an impressive average helium concentration of 3.4%.
Marani said the most important part is that Virginia is shaping up to be a world-class project and that the funds raised will allow them to effectively advance their busy work schedule over the next six months as they prepare for the start of production of phase 1.
“Of course, with Evander proving another world-class helium show, the additional 52,000 hectares of exploration rights could start to add an interesting dimension to this endeavor in the medium term,” he said.
The company further said it will also use funds to advance Phase 2 feasibility studies and replenish working capital attributed to delays due to forced Covid-19 lockdowns in fiscal year 2021.
The group said it was no longer necessary for its shareholders to exercise caution when dealing with its securities.
The short-lived warning was only issued last Wednesday.
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