(MENAFN - ProactiveInvestors - Australia) Buccaneer Energy (ASX:BCC) is set raise a total of 19.2 million via a placement and loan that will help fund its exploration activities in Alaska.
It will issue 198,000,000 shares at 0.047 each, representing a discount of 13% to the last closing price, to raise a total of 9.3 million. The company will also raise capital through an unsecured loan of 9.9 million.
The placement and the loan are being equally taken up by three high net worth Asian clients. Since the placement will keep the investors shareholding below the 15% threshold, Buccaneer will not need to obtain shareholder approval.
The loan is payable within 12 months after draw down and will be used to support the company's offshore and onshore Cook Inlet exploration program.
Buccaneer will also commit funds to the Kenai Offshore Ventures to finalise modifications and upgrades to the Endeavor jack up rig.
Additionally, Buccaneer is in the final stages of refinancing its existing secured US20 million term loan that expires next month and US30 million revolver facility that expires next December, and potentially extending the maturity date of the facilities.
The refinancing of the existing US20 million term loan will be structured as a reserve based lending facility with a borrowing hinging upon proved developed and producing reserves at its 100% owned Kenai Loop project.
Buccaneer's flagship projects are a series of onshore and offshore developmental and exploration prospects in Alaska's Cook Inlet.
Its cash flow strategy includes developing the 100% owned Kenai Loop onshore gas project that has independently been assessed to contain 6.4 million barrels of oil equivalent; operating the offshore jack up rig for use by third parties; and developing its 100% owned offshore Cook Inlet projects that have an assessed resource of 73.3 million barrels of oil equivalent in 2P reserves.