LONDON (Alliance News) - Range Resources PLC Thursday said it has failed to secure the USD60 million in funding that it has been chasing since the beginning of April, giving the company less than two months to secure funding through alternative options before its shares are cancelled from trading.
On April 1, Range shareholders approved the company's proposition to sign a USD60 million funding deal with Core Capital Management Co Ltd in order to fund its growth plans and to lift the suspension of the company's shares.
The deadline for the deal to be completed was extended twice after it was snagged by delays, the latest extension pushing back the completion date to May 14. On Thursday the company said it "regrets" to inform shareholders that the deal was not completed on time, which has resulted in the deal being terminated.
"The directors are very disappointed that Core Capital has not been able to complete the transaction and will consider appropriate action in conjunction with its legal advisers," said Range.
"Range is in advanced discussions with a number of other parties and is evaluating various financing options to achieve the best solution for all stakeholders and to ensure that the company has access to adequate funding to achieve its growth ambitions in Trinidad and to repay the outstanding debt facility with Lind Asset Management LLC," it added.
Range began a drilling programme in Trinidad on Wednesday, and said the programme will "not be affected by the delay" in securing funding. The programme is being funded by the extended 12 month credit facility with Range's strategic partner, LandOcean Energy Services Co Ltd.
"Whilst disappointed that Core Capital has not completed the funding, the directors remain confident that alternative funding will be available in the short-term to replace the Core Capital investment and to enable Range to execute its growth strategy in Trinidad," said Range.
Range Resources shares were suspended on December 1, 2014. The company has a six-month period to satisfy the Australian Securities Exchange and AIM about its financial position, meaning that it has until roughly the beginning of June to resolve its funding issues before its shares are cancelled.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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