Triangle Energy (Global) Ltd (ASX:TEG) (FRA:WMOA) has received firm commitments for $10 million in a placement to new and existing sophisticated, institutional and professional investors.
The company has welcomed the strong interest shown in this placement along with the recognition of its Perth Basin expansion strategy and its significant investment in ASX listed gas exploration and development company State Gas Limited (ASX:GAS).
The funds will be applied to:
- Cliff Head Oil Field: CH6 Workover (re-entry) and CH11 Water Injection slickline intervention. These workovers are planned to commence in the coming weeks. Well planning will also be initiated for the drilling of South-East Nose, West High and Mentelle as well as grouting work on CH10;
- L7, EP-437 and WA-481-P Permits: Progressing with the seismic planning at L7 and EP-437 Permits and the exploration evaluation at WA-481-P; and
- Corporate and working capital: Funds will be applied to the costs of the offer, working capital and undertaking a feasibility study for a Mid-West oil refinery and to establish a Cliff Head Infrastructure Future Fund which will provide a cash reserve for any planned or unplanned major project in Cliff Head.
“Committed to building a strong balance sheet”
Triangle managing director Rob Towner said: “This is a true sign that investment in potentially diverse energy companies is strong.
“Triangle has exposure to production and exploration for conventional oil in one of Australia’s most under explored hydrocarbon basins, the east coast gas market, renewables and critical processing infrastructure.
“The company is committed to building a strong balance sheet to demonstrate its ability to implement capital projects to extend the life of its assets, particularly Cliff Head.
“We are also allocating funds to establish the Cliff Head Future Fund, which will provide a cash reserve for any planned or unplanned major project in Cliff Head so as to ensure that necessary works may be undertaken without delay.”
Tranche one
The company appointed CPS Capital Group Pty Ltd to act as lead manager and broker to this successful capital raising.
The company will issue up to 454,545,455 fully paid ordinary shares to sophisticated and professional investor clients of CPS at an issue price of $0.022 per share together with one free attaching option exercisable at $0.035 per option with a two year term from the date of listing for every two shares subscribed for and issued - to raise up to $10 million before costs.
The placement will be conducted in two tranches with 80,649,566 shares to be issued under tranche 1 upon completion.
Upon completion of Tranche 1, the 80,649,566 new shares will represent approximately 11.5% of the share capital of the company, which will have 701,413,047 ordinary shares on issue.
The company expects the issue of the shares under the placement to occur on or around 29 June 2021.
Tranche two
The issue of the balance of the shares and all of the free-attaching options (in respect of both Tranche 1 and Tranche 2) will occur in Tranche 2.
The issue of the shares the subject of Tranche 2 and the issue of all of the options is subject to the company obtaining shareholder approval at a general meeting.
Directors of the company (or their nominees) intend to participate in Tranche 2 of the placement for around $250,000, subject to receipt of necessary shareholder approvals.
Lead manager fee
CPS will be paid a management fee of 2% and a placing fee of 4% of the funds raised under the placement and will also be issued 135,000,000 options as partial consideration for services in association with the placement and assistance in relation to the issue of the entitlement options.
CPS will also be paid a monthly corporate advisory fee of $6,000 for a period of at least 12 months following execution of the lead manager mandate.