Tethys Petroleum (TSE:TPL, LON:TPL) has told investors that it has entered into a non-binding letter of intent with Kazakh investor Olisol which is making up to C$40mln available to the company.
Olisol is offering C$15mln of interim debt financing which would be subsequently converted into equity, as well as a further C$25.5mln injection of capital via a share placing.
The investors would subscribe for 150mln new Tethy’s shares at a price of 17 Canadian cents each, which represents a premium of about 180% to Friday’s closing share price of 6 cents.
John Bell, Tethys chairman, in a stock exchange statement, said: “We are pleased to have reached conditional agreement with Olisol on a potentially transformational refinancing and will work as hard as we possibly can to drive the process to a swift conclusion."