Mosman Oil & Gas (LON:MSMN) has secured a further £1.5mln towards the funding of its acquisition of STEP (the South Taranaki Energy Project).
It has raised the cash via an oversubscribed share placing which sees 33.3mln new shares issued at a price of 4.5p each, compared with yesterday’s closing price of 6.08p.
The company said the injection, along with last week’s royalty deal, means it can progress with the proposed acquisition of 70% of STEP.
STEP itself is to cost about £4.2mln (NZ$10mln), so Mosman’s 70% interest will around £2.9mln with a first tranche payment of £2.1mln initially, to be followed by a further payment six months after the deal’s completion.
"We are delighted with the ongoing support from shareholders and I would like to take this opportunity to welcome a number of new shareholders to our share register,” said chairman John Barr.
“With their backing we have been able to reach a major milestone in being able to fund a 70% interest in the STEP assets, a producing and cash flow generating project with significant upside potential.
“We are excited about this fantastic acquisition and the future prospects it offers Mosman."