Coal seam gas (CSG) specialist Comet Ridge Limited (ASX:COI) has successfully completed a heavily over-subscribed $10 million placement to institutional and sophisticated investors.
Comet Ridge Managing Director Tor McCaul said the Placement received strong support from existing shareholders and new institutional investors.
He said the funding will be used further advance Comet Ridge’s gas projects in Queenland.
“These projects are being progressed to feature prominently as short to mid-term supply solutions for a gas market with significant demand requirements. The net proceeds of the Offer and existing cash will be used for:
- Ongoing appraisal and pre-development activities at the Company’s flagship Mahalo project;
- Comet Ridge’s share of costs for the Albany sandstone initial appraisal programme in the Galilee Basin; and
- Other permit exploration and appraisal; and
- General corporate and working capital purposes.
Mr McCaul said the Company is now well positioned to continue pursuing its strategy of bringing material gas volumes into the East Coast market, as quickly as possible, from low-cost onshore assets.
Comet Ridge is also offering existing eligible shareholders the opportunity to participate in a Share Purchase Plan (SPP) to raise up to a further $3 million.
Canaccord Genuity (Australia) Limited acted as Lead Manager and Bookrunner for the Placement and Taylor Collison was Co-Manager. Integra Advisory Partners acted as Comet’s Corporate Advisor and Delphi Partners as Legal Advisor.