Aminex (LON:AEX) has secured £1.67mln (US$2.64mln) to help fund drilling plans in Tanzania.
The company is to issue 88mln new shares at a price of 1.9p each, a discount of about 10% to Wednesday’s closing price of 2.1p.
"We are delighted with the support we have received for this placing,” said chief executive Jay Bhattacherjee.
Bhattacherjee adds that the investor support attests to the company’s attractive blend of near-term production, medium term appraisal and development drilling and longer term exploration opportunities.
Cash raised through the placing is earmarked for planning activities for a new appraisal well (Ntorya-2) as well as a side-track to the original Ntorya-1 well.
It will also boost the group’s working capital as it awaits the finalisation of a gas sales agreement for Kiliwani North field, where the company is targeting ‘first gas’ production in ‘mid-2015’.
Signing of the finalised contract triggers a clause in an deal with partner Solo Oil (LON:SOLO), which could then acquire a further 6.5% stake in Kiliwani North for US$3.5mln.