African Energy, the Australian-listed exploration outfit said it has raised a couple of million Pulas that will go towards the acceleration of its Sese Project near Franscistown.
The company, which is also mulling a secondary listing on the local bourse, said it has successfully placed 30 million new ordinary shares at a price of A$0.50 per share to raise up to A$15 million (about P106.7 million).
“The capital raising was strongly oversubscribed despite difficult market conditions and is a testament to the quality of the Sese project,” the company said in a recent update.
”The funds raised will allow the company to substantially advance the Sese coal project with a view to potential development in late 2012,” it added.
African Energy said the proceeds from the placement will be divided into activities at Sese that include the infill drilling at Sese project to measured status that is allocated A$2 million and A$ 1 million will go towards the Sese trial pit & bulk sampling.
A total of A$6 million will be used for the project’s Feasibility Studies; A$1 million will go towards Sese Environmental Impact Assessment while Working capital & transaction costs have been allocated A$5 million.
The new shares were primarily placed with institutional and sophisticated investors from Asia, Europe and Australia. Shareholder approval is not required for the Institutional Placement.
Helmsec Global Capital Limited acted as the lead manager for the capital raising under an exclusive mandate to provide financial and related marketing advice over a 12 month period.
African Energy said the capital raising was strongly oversubscribed despite difficult market conditions and is a testament to the quality of the Sese project.
The funds raised will allow the company to substantially advance the Sese coal project with a view to potential development in late 2012.
African┬áEnergy┬áowns┬áSese project some 50 kilometers south-west of Francistown and last year the company announced the┬ádiscovery of┬á“potentially very large deposit of thermal coal” in the northwest of┬áSese project.┬á
Meanwhile, the company has appointed former Managing Director of Debswana, Blackie Marole as its Chairman.
Debswana is diamond mining company which is 50/50 owned by Botswana Government and De Beers.