Buru Energy Ltd (ASX:BRU) shareholders have shown strong support for the company’s recent capital raising efforts, delivering approximately $9.2 million into Buru’s coffers.
With the money in the bank, Buru is now fully funded for its 2022 appraisal and commercialisation work at its high potential Rafael gas/condensate discovery.
The funds will be used for:
- Well flow testing;
- 3D seismic acquisition; and
- Pre-commercialisation activity.
The $9.2 million raised was the result of a 1 for 6 non-renounceable pro-rata entitlement offer of fully paid ordinary shares in Buru at an offer price of $0.16 per new share as announced on May 3, 2022.
Further to this, eligible shareholders who applied for their entitlements in full were also able to apply for additional shares offered under the entitlement offer, as part of a shortfall offer.
Strong support pushes Buru forward
“We are most appreciative of the strong support from Buru’s major shareholders and its wider shareholder base for this capital raising,” Buru’s executive chairman Eric Streitberg said.
“The share market conditions were very challenging from the start of the issue, but with the funds received we are now fully funded for the upcoming well flow testing program, 3D seismic acquisition, and pre-commercialisation activity at our very exciting Rafael gas and condensate discovery.
“We are also pleased with the response we have received from new institutional investors as part of the subsequent rights issue shortfall placement, reflecting a broader recognition that gas will be an integral part of the energy mix for many years to come.”
New shares (other than those issued under the placement) are expected to be issued on June 7, 2022, and start trading on ASX on June 8, 2022.
The placement shares are expected to be issued on June 8, 2022.
