(Alliance News) - Curzon Energy PLC on Thursday said it intends to raise as much as GBP200,000 from a secured note issue in order to finalise negotiations and documentation for the Texas gas project.
The notes will be issued "to high net worth investors" and have a 13% per annum yield plus a 5% redemption fee. The notes are, however, due for repayment in October 2019.
The notes are secured on Curzon's interest in the Coos Bay coal bed methane project in Oregon.
In addition, Curzon will issue warrants over 1.0 million shares with an exercise price of 2 pence for 18 months.
The money will go towards working capital and the finalisation of Curzon's partnership deal with Pared Energy LLC over a gas project in Texas. The Texas project contains possibly trillions of cubic feet of gas.
Curzon Chief Executive Scott Kaintz said: "This facility assists the company in bringing to fruition several months of work in laying the foundations for participation in the Texas gas project with Pared Energy. We look forward to making further announcements on these matters in due course."
Shares in Curzon closed down 2.8% at 1.41 pence on Thursday.
Curzon Energy (CZN)