Proactive Investors UK
By Jamie Ashcroft
Longreach Oil & Gas(CVE:LOI) confirmed it has raised C$9.7mln to support the group’s ongoing drill programme in Morocco.
Drilling resumed on the Sidi Moktar licence area, in Morocco, in late March with the spudding of the Kamar exploration well.
Kamar is being drilled to a depth of 3,500 metres and it has multiple targets, a lower Liassic reservoir and Triastic clastic reservoirs. The spudding was confirmed on March 21, at which point Longreach said the programme would last for 70 days.
Through the private placing Longreach is issuing debentures to investors, including two of its major shareholders Dundee Corporation and funds advised by Westface Capital.
The two-year debentures are in units of C$1,000 and carry interest of 10% per year. The debentures can be converted, in certain circumstances, into new Longreach shares – priced at the greater of 30 cents per share, or a volume weighted average price at the time of conversion.
Share warrants are also being issued as part of the placing, with investors receiving 1,000 warrants for each C$1,000 debenture unit.
Dundee Corporation has subscribed for C$2.82mln of debentures and its stake in Longreach, which currently stands at 15.15%, could increase to 26.25% upon conversion into equity. West Face, meanwhile, is buying C$1.88mln of debentures through the placing and its stake could increase to 18.72%.
