Cloudbreak Discovery PLC (LSE:CDL, OTC:CDBDF) told investors it has finalised the sale of US oil assets, and at the same time raised £300,000 in a placing.
The company, in a statement, said it sold its interest in the Masten Unit Energy Project in Texas to G2 Energy Corp for £50,000 upfront and followed by a further £50,000 over the next five months.
Importantly for Cloudbreak, the sale removes an immediate £75,000 liability and any future liabilities tied to the assets.
“This sale of the US asset brings in cash and removes any future liabilities from the balance sheet,” managing director Tom Evans said.
In the placing, meanwhile, the company is issuing 120 million new shares priced at 0.25p, with all the shares taken up by one single institutional investor. Proceeds are earmarked for exploration at the Darlot West gold project in Western Australia.
This comes after a week of gold exploration news, from Darlot West, that propelled the micro-cap share more than 100% higher.
In London this morning, Cloudbreak had added some 16% to trade at 0.31p, valuing the explorer at just under £4 million.