Pilot Energy raises $5M to advance Cliff Head operations
Pilot Energy (ASX:PGY) will raise $5 million through an oversubscribed share placement to sophisticated, professional, and institutional investors.
The funds will support the company's ongoing operations at the Cliff Head Oil Project, corporate initiatives, and the completion of its transaction with a Korean consortium.
The placement, conducted at $0.010 per share will be executed in two tranches, comprising 500 million new fully paid ordinary shares.
Tranche 1 will issue 324,415,003 shares with settlement expected on April 23.
Tranche 2, requiring shareholder approval at the extraordinary general meeting on June 4, will see the remaining 175,584,997 shares issued, with settlement anticipated by June 5.
Each participant in the placement will also receive a one-for-one attaching option with a $0.033 strike price, subject to shareholder approval. The placement was led by Alpine Capital as the sole lead manager.
Proceeds will be allocated primarily to Cliff Head operations ($4.5 million), corporate costs and working capital ($1.9 million), and capital raising expenses ($300,000).
Additional funding from convertible notes ($1.3 million) and existing cash ($400,000) brings the company's total available capital to $6.7 million.
Pilot Chairman Greg Columbus noted the strong support as a reflection of the company’s valuable asset base.
He highlighted recent developments including board renewal, the Korean consortium's commitment to the Mid-West Clean Energy Project, deferred payment for the Cliff Head acquisition, and a major resource upgrade to 1.1 Tcf of gas in permit WA-481-P.
At the time of reporting, Pilot Energy's share price was $0.0070.