LONDON (Alliance News) - Aminex PLC Friday laid out plans to raise up to GBP19.5 million through a large placing and open offer priced at a discount in order to fund the drilling of the Ntorya-2 appraisal and Ntorya-3 exploration wells in Tanzania.
Aminex has proposed issuing a total of 1.49 billion new shares in the company priced at 1.3 pence each - a 3.7% discount to the closing share price on Thursday.
Aminex shares were trading down 1.9% to 1.33 pence per share on Friday.
The majority of the shares will be issued through a cornerstone placing, with 983.1 million new shares set to generate GBP12.8 million of the proceeds while a further 318.9 million new shares will raise a further GBP4.1 million under an institutional placing.
Importantly, the cornerstone investor is Eclipse Investments LLC, which is wholly-owned by the Al Zubair family, who in turn own 100% of The Zubair Corporation LLC.
"We are very pleased to announce this agreement with the Zubair Corporation. Zubair is a long-established international group and one of Oman's most significant and reputable companies," said Chief Executive Jay Bhattacherjee.
"With such a cornerstone investor together with the anticipated proceeds from the fundraising and the cash flow from Kiliwani production, Aminex will be well placed to build on its drilling success in the Ruvuma Basin of Tanzania and to realise the potential from the exciting Ntorya-2 and Ntorya-3 wells," he added.
Once completed, Aminex then plans to conduct a 1-for-10 open offer to raise the other GBP2.6 million by issuing up to 197.6 million new shares. Any shares made available that are not taken up will be issued at the same price within seven days of the offer being completed.
Both placings and the open offer will require shareholder approval at a meeting on August 2, but the open offer, which is not underwritten, is also conditional on the placings becoming unconditional.
On Friday, Aminex had 1.97 billion shares in issue. The 1.49 billion new shares proposed on Friday represent over 76% of the existing issued share capital of Aminex and over 43% of the enlarged issued share capital.
Based on the enlarged issued share capital, the Zubair family taking the shares under the cornerstone placing would be acquiring a 28.3% stake in Aminex.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Aminex (AEX)