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    Australia's Armour completes A$8.2mn capital raising

Summary

Funds raised together with existing funds will be used for the Northern basin business demerger and McArthur Oil & Gas IPO costs.

by: Shardul Sharma

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Australia's Armour completes A$8.2mn capital raising

Australian explorer Armour Energy has received firm commitments for an A$8.2mn ($6mn) capital raising being undertaken by way of a private placement to investors, it said on September 27.

The placement shares are at an issue price of A$0.026 which represents a discount of 21% to the last traded priced of $0.033 on September 22 and a 17% discount to the 5-day volume-weighted average price. 

Funds raised together with existing funds will be used for the Northern basin business demerger and McArthur Oil & Gas IPO costs, progressing planning and approvals for the proposed 2022 work programme, tenure compliance expenditure, Kincora processing facilities and pipeline maintenance, servicing and ensuring compliance with debt facilities, the costs of the offer, trade creditor payments and general working capital.

In addition to the funds raised via this placement, Armour will continue to also seek partners to fund production enhancement work programmes at its Surat project, it said. Last week, the company said it will restimulate the Warroon #1 well in Queensland's Surat basin in partnership with a private entity.