Pantheon Resources PLC (AIM:PANR, OTCQX:PTHRF) has raised $29 million in what the explorer called a “heavily oversubscribed” equity funding, that promises to advance its assets in Alaska.
High demand for shares saw the company increase the size of the funding round to $29 million, after asking initially for a minimum of $18.5 million.
"We are reassured by the overwhelming demand in this fundraising, but we also value the strategic benefit of strengthening our hand in ongoing funding and commercial negotiations, executive chair David Hobbs said in a statement.
In total, the company will now issue 132.45 million new shares priced at 17p each, a discount of around 14%.
The equity raise was arranged by Canaccord Genuity (TSX:CF, LSE:CF) and Zeus Capital.
Pantheon directors including chief executive Jay Cheatham and chair David Hobbs participated in the funding (altogether directors bought 1.39 million new shares between them).
Pantheon’s bondholders, meanwhile, are set to receive 22.38 million new shares as Pantheon reduces its convertible bond balance from $24.5 million to $19.6 million.
The raise comes as Pantheon is planning and preparing for its next field season.
“[We are] able to spud the Megrez-1 well on our Ahpun Eastern Topsets in Q4 this year and to be able to conduct extended testing on that well in a success case,” Hobbs said.
He added: “We believe Megrez-1 to be one of the most impactful wells in the company's history, targeting a 609 million barrel resource in a high-quality sandstone reservoir, adjacent to pipeline and road infrastructure and analogous to other fields on the Alaska North Slope currently under development.
“Success at Megrez-1 will be potentially game-changing for our Company and we look forward to sharing progress with shareholders in the coming weeks and months."
Pantheon, in parallel, is selling further new shares to retail investors in the UK through the PrimaryBid platform – it will sell up to £2 million of equity via PrimaryBid, at 17p per share.
Investors participating in the PrimaryBid funding must make a minimum investment of £250.