Norwest Energy NL (ASX:NWE) has completed a bookbuild to raise $2 million in a placement to a range of sophisticated and institutional investors, including major shareholders.
The company’s top three shareholders, Mineral Resources Ltd, 3C Group IC Limited and Sundowner International, supported the placement.
Proceeds will be used to fund drilling costs associated with Norwest's 20% interest in the Lockyer Deep-1 exploration well in Perth Basin exploration permit EP 368, on-trend with three very significant discoveries, and targeted for drilling in the first half of 2021.
Funds will also be allocated towards planning and preparation for a 3D seismic survey across EP368 and EP426 (post drilling of Lockyer Deep-1), desktop studies on exploration permit TP/15 and general working capital.
“Pleased to complete capital raising”
Norwest managing director Iain Smith said: "We are pleased to have completed this capital raising and appreciate the support of our major shareholders.
“The company is now in an excellent financial position as we prepare to drill the Lockyer Deep gas prospect, which comes on the back of three very significant and valuable Permian discoveries.
“While discussions regarding the timing of a rig slot continue, we remain optimistic of drilling during H1 2021."
Placement details
The placement will result in the issue of 333,333,340 new fully paid ordinary shares at an issue price of 0.6 cents per share and is not subject to shareholder approval.
The placement is expected to settle on Thursday, January 28, 2021.
Euroz Hartleys Limited acted as lead manager to the capital raising.