Renergen raised about R107.51m on Australian Securities Exchange and the JSE through placement of shares. File photo.
Renergen raised about R107.51m on Australian Securities Exchange and the JSE through placement of shares. File photo.

Renergen raised about R107.51m on Australian Securities Exchange and the JSE through placement of shares

By Sandile Mchunu Time of article published Jun 25, 2021

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Renergen, the emerging domestic natural gas and helium producer, said on Friday, it has raised approximately $10 million (R107.51m) on the Australian Securities Exchange and the JSE through the successful placement of shares, with the proceeds expected to be used to accelerate exploration at its Virginia Gas Project.

Renergen issued a total of more than 5.63 million new shares, with 2.45 million crest depository interest (CDI) at A$1.78 a security and 3.18 million shares at R19.10 a share.

This represented a 9.5 percent discount to the Renergen volume weighted average price (VWAP) for the 30 days prior to the issue price being agreed on the JSE.

The group said the placement was subscribed by existing and new domestic and international institutions and sophisticated investors.

Renergen successfully listed on the Australian bourse in June 2019, and has been listed on the Alternative Exchange (AltX) since 2015.

Chief executive Stefano Marani said they are extremely proud of the ongoing success of their exploration program at Virginia, which has delivered world class helium grades.

“We are just scratching the surface of the potential at Virginia and with a primary focus on hitting our Phase 1 and 2 milestones, we wanted to take the opportunity to strengthen our balance sheet and accelerate exploration and development activities at Virginia.

The Virginia Gas Project will be the major beneficiary from these funds as the group will use the majority of the funds to accelerate exploration at its 100 percent owned Virginia Gas Project.

This follows after exceptional drilling results which have delivered helium grades as high as 12 percent helium.

The group said Virginia currently boasts an impressive 3.4 percent average concentration of helium.

Marani said the most important part is that Virginia is shaping up to be a world-class project and the funds raised will allow them to efficiently advance their busy work schedule in the coming six months, as they work towards commencement of Phase 1 production.

“Of course, with Evander proving another world class helium show, the additional 52 000 hectares of exploration rights may begin to add an interesting dimension to this business medium term,” he said.

The company further said it will also use funds to progress the feasibility studies for Phase 2 and replenish working capital attributed to delays from the Covid-19 enforced lockdowns in financial year 2021.

The group said it is no longer necessary for its shareholders to exercise caution when dealing with its securities.

The short-lived cautionary notice was only issued last Wednesday.

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BUSINESS REPORT ONLINE

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