RE: Gallactica project4 Sep 2024 13:21
Rick ALL money raised is for the acquisition project last week is for that purpose as below but with zero contingency here estimated spends will increase on 6 wells alone! HE1 have to find £ fast for their own working capital as zero revenue just many millions outlay before they might see a penny back - nothing guaranteed even on the 50% chancer acquisition!IMHO DYOR
‘The Subscription
The Subscription was made with a single institutional investor, Cynosure Capital PTY Ltd, with Marex Financial acting as the placing agent, and will enable the Company to meet the financial obligations under the Agreement which will result in the Company acquiring the Interest. Subject to the conditions in the Agreement having been satisfied or waived (if capable of waiver), the net proceeds of the Subscription will be applied in respect of the Acquisition as follows:
· US$1.5 million in respect of past costs incurred by Blue Star on the Galactica Project;
· 100% of the costs in respect of six wells capped at US$450,000 per well;
· up to US$2.55 million in in respect of the Company's 50% participating interest share of the tie-back, installation andprocessing expenditures required for the development of the Galactica Project;
· the balance of US$1.18 million in respect of associated fees, legal costs and working capital and development contingencies.‘