Aminex plc (LON:AEX) is to raise around £19.5mln, with the funds to be largely used to finance the drilling of exploration wells.
The company is intending to issue around 1.5bn shares at 1.3p, of which some 983mln will be placed to a cornerstone investor, Eclipse Investments, which is part of the Zubair Corporation.
Zubair is pumping around £12.8mln into Aminex.
“Zubair is a long-established international group and one of Oman's most significant and reputable companies. It has existing interests throughout Middle East and Africa, including Tanzania, in a variety of industries,” said Jay Bhattacherjee, chief executive officer of Aminex.
Other institutional investors are also expected to take around 319mln shares, raising £4.1mln, while Aminex shareholders will be able to grab some shares at the same price through an open offer, raising up to £2.6mln for Aminex.
Shareholders will be able to apply under the open offer for new ordinary shares in excess of their entitlements, though if the demand is too great the share allocations will be pared back on a pro rata basis.
The company has earmarked the funds for the drilling of the Ntorya-2 and Ntorya-3 appraisal wells at the Ntorya discovery in the Ruvuma basin of Tanzania.
“With such a cornerstone investor together with the anticipated proceeds from the fund-raising and the cash flow from Kiliwani production, Aminex will be well placed to build on its drilling success in the Ruvuma Basin of Tanzania and to realise the potential from the exciting Ntorya-2 and Ntorya-3 wells," said Bhattacherjee.