LONDON (Alliance News) - Columbus Energy Resources PLC said Monday it aims to raise GBP2.5 million via share placing to repay loans and expand its assets in Trinidad.
The oil & gas producer said it will place 71.4 million shares at 3.5 pence each with new and existing shareholders.
The placing price represents a 6.7% discount on the closing price at last Friday. Shares in the company were trading up 1.3% at 3.80p on Monday.
The company said it will use the funds raised in the placing to repay its North Energy Capital AS loan facility of USD1.3 million, establish and implement a multi-well drilling campaign on the Steeldrum assets in Trinidad and to upgrade facilities in Trinidad to speed up oil production.
Columbus expects the new shares to start trading on November 5, after which it will have 830.9 million shares in issue.
The company will hold a general meeting with shareholders on November 2 to vote on the placing.