Calima Energy Ltd is making considerable progress on the path to production and revenue generation from assets in the prolific Montney Formation in Canada and is confident of ending an ASX trading suspension in the near future.
After completing capital raisings with A$38 million in shares to be issued, the company expects the re-listing of its securities to commence on or around May 3, 2021.
This process is also being boosted by progress with the Blackspur Oil Corp acquisition which will create a stronger merged entity.
Capital raising strongly supported
Jordan Kevol, CEO of the combined company, said: “We are extremely pleased with the exceptionally strong support for our capital raising, which validates the quality of the asset base and importantly the strong cash flows that the assets will generate in a rising energy market.
"We look forward to completion, growing our production base and generating significant operating cash flow to create value and share with our shareholders.”
Blackspur transaction progresses
The acquisition arrangement has progressed with Blackspur receiving Canadian Court Approval in respect of the binding agreement with Calima.
Blackspur owns producing oil and natural gas assets in two core areas within Alberta, at Brooks and Thorsby.
Calima has also been buoyed by news that National Bank of Canada has approved a C$25 million revolving credit facility for Blackspur Oil Corp.
Together with revenue generated from operations, this will provide the additional short-term working capital to fund the capital works program for 2021 and 2022.
Scale-back applied
Calima has completed its fundraisings with A$38 million of shares to be issued.
The company received strong demand in the retail offer and scale backs have been applied with the scale-back funds to be remitted back to the investors over the coming days.
Evolution Capital Advisors Pty Ltd confirm that institutional and sophisticated investors have provided their A$31 million of funds in their capacity as lead manager and bookrunner.
Calima will move to allotment on or around April 28, 2021.
The institutional and sophisticated component was well supported by Auctus Advisors LLP as UK Placing Agent on the placement and Jermyn East Capital Pty Ltd as corporate advisor to the company.