Global Petroleum Ltd (AIM:GBP) shares fell in Tuesday’s early deals as it announced a capital raise, supporting its ‘transformational’ phase focusing on gold opportunities in Australia.
Proceeds from the £1.5 million raise are earmarked to support the firm’s Juno Project, which it says is similar to the Havieron and Telfer gold deposits – upon which UK small-cap favourite Greatland Gold has built its business.
To raise the funds, it is selling some 666.6 million shares at 0.225p each, compared to Monday’s close of 0.29p.
The firm intends to invest in Juno’s 2025 work schedule which includes ground electromagnetic surveys, magnetic and gravity modelling, and, in the second half of the year drilling.
In its oil and gas business, meanwhile, the company retains its interest in Namibia, where efforts to farm out the PEL 94 asset are continuing.
The company noted that it has extended its timeline to finalize an agreement, aiming for improved terms and highlighting the geological similarities between PEL 94 and discoveries in the Orange Basin.
A further £250,000 of new capital may still be raised through a retail offer, via CMC Markets’ CapX platform.
Hamza Choudry, Global Petroleum’s chief financial officer, in a statement, highlighted the continued support shown in this placing from the firm’s long-term family office, high net worth shareholders and new investors.
“Our primary goal is to ensure that our shareholders can maximize their value by securing their participation ahead of upcoming expected developments in 2025,” Hamza said in a statement.
“We are excited for the future of Global and believe that we are nearing a transformational period for the company and look forward to sharing this journey with our shareholders."