Comet Ridge (ASX: COI) has received a major vote of confidence in the company's operations in difficult markets, with a $9 million placement being oversubscribed.
The placement to was to existing and several new institutional investors, and comprised 50 million shares at $0.18 each.
Proceeds will be used to fund the completion of the Mahalo Project work program including workovers and operations, other portfolio project costs, corporate and technical costs and working capital.
The company will continue pumping operations at both its Mahalo and Mira Field Pilots as it seeks to achieve commercial gas flow rates from one or more wells.
This will allow it to convert its coal seam gas resources into Proved and Probable Resources, which is targeted for the first quarter of 2014.
The Placement price of A$0.18 per share represents a discount of 21.7% to the closing price of COI shares on the ASX on 29 July 2013.
Integra Advisory Partners Pty Ltd and Ord Minnett Limited acted as Joint Lead Managers to the Placement and Porter Davies Lawyers acted as legal adviser.
The Mahalo project has a Contingent Resource of 193 petajoules of gas.
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