Borders & Southern Petroleum (AIM:BOR) shares fell 10% after it announced it had raised £1.5 million to support the development of its Darwin Gas Condensate discovery in the Falkland Islands.
The funding comes from a share placing and a subscription by the company’s directors, with 100 million new shares issued at 1.5 pence each—a 16.67% discount on the previous day’s closing price.
The company raised £1.04 million through the placing of 69.7 million shares and £505,000 from the directors, including chairman Harry Dobson and CEO Harry Baker.
Proceeds will go towards covering licence fees, technical studies, and general expenses, as Borders looks to move the Darwin project closer to appraisal.
The company has also engaged an international advisor to assist with securing partners for the project, signalling progress in its efforts to advance development.
A purely technical movement reflecting the issue of new stock, the price fell 0.17p to 1.62p.