Pantheon Resources PLC (AIM:PANR, OTCQX:PTHRF) told investors it has elected to make its quarterly bond payment, including interest, of $2.72 million using equity - through the issue 7.47 million new shares priced at $0.364 each.
The company, also, said it has raised $3.36 million of new capital, through a private placing to existing long-term shareholders. It sold 9.23 million new shares, also priced at $0.364 per share.
Proceeds from the share sale will provide additional working capital, and, increase its flexibility in advancing its funding discussions.
It comes as the company is making arrangements for field development funding, following its announced gas sales precedent agreement announced earlier this month and opens potential routes for longer-term funding.
Pantheon noted that it would be seeking $60 and $85 million in due course, to cover the costs necessary to complete an Environmental Impact Statement, as well as general and administrative expenses, along with paying for US IPO preparation costs.
That budget would also include the cost of drilling the planned Megrez-1 well to assess the Ahpun East project area, estimated to contain a prospective resource of 609 million barrels of ‘marketable liquids’. At the upper end of the budget range, the company said it could also pay for the drilling and testing an additional Ahpun appraisal well, if one is required.
"A year ago, Pantheon embarked on a refreshed strategy to drive progress towards financial self-sufficiency as quickly as possible and at minimum possible value dilution to existing shareholders,” executive chair David Hobbs said in a statement.
“The progress of the past twelve months - independently certifying the contingent resource estimates and securing a significant agreement for the potential long-term gas supply with the State of Alaska - have the potential to significantly de-risk the company, and could at the same time, shrink the remaining funding requirement to manageable proportions."