Reconnaissance Energy Africa Ltd (TSX-V:RECO, OTCQX:RECAF, FRA:0XD) said it plans to use proceeds from its newly closed C$21.85 million bought-deal offering to fund an open-hole horizontal sidetrack and production testing program targeting Namibia's Huttenberg and Elandshoek formations.
The company sold nearly 30 million units at C$0.73 per unit, including the full exercise of an over-allotment option. Each unit consists of one common share and half of one warrant, with each whole warrant exercisable at C$0.93 until September 2029.
Research Capital Corporation led the underwriting syndicate as sole bookrunner, with Canaccord Genuity (TSX:CF, LSE:CF) Corp. and ATB Cormark Capital Markets also participating.
The warrants are expected to begin trading on the TSX Venture Exchange under the symbol ‘RECO.WT.D’ next week, pending final exchange acceptance.
The company paid the underwriters a cash commission of C$1.28 million and issued 1.75 broker warrants, along with a C$15,000 advisory fee and 6,000 advisory warrants on the same terms. Broker warrants are exercisable at C$0.73 until September 2029.
The offering was completed under a prospectus supplement to ReconAfrica's short form base shelf prospectus dated April 2026.
