Cougar Raises $8.3m for Kingaroy Power Project Thursday, September 03, 2009
Highlights: • Cougar Energy share placement raises A$ 8.29 million • Funds to enable move to ignition and gas pre-production at Kingaroy underground coal gasification (UCG) and power station project • Largest new share placement to date for Cougar Energy • New Australian institutions and sophisticated investors expand share register • International institutions subscribe to Cougar Energy shares for the first time • The Company announces its first Share Purchase Plan at the same price as the placement to raise up to an additional A$ 6 million
Cougar Energy Limited announces the successful completion of a capital raising placement of A$ 8.29 million and is also pleased to announce the Company’s first Share Purchase Plan.
The placement of 100,500,000 new fully paid ordinary shares at A$ 0.0825 (8.25 cents) per share was made to institutional and sophisticated investors in both Australia and overseas.
The placement was lead managed and arranged by Patersons Securities Limited. A broad range of Patersons’ institutional and sophisticated investor clients participated in this raising. Merriman Curhan Ford, a US investment bank based in San Francisco also participated as a co-manager in the placement.
Settlement is scheduled to take place on 8 September 2009 with the allotment and quotation on the ASX of all the new fully paid ordinary shares issued under this placement occurring on 9 September 2009.
In addition to the share placement, Cougar Energy also announces that a Share Purchase Plan (SPP) offer will be made to eligible shareholders, giving them the opportunity to subscribe for new fully paid ordinary shares in the Company at A$ 0.0825 (8.25 cents) per share. This is the same price at which shares were offered to institutional and sophisticated investors under the share placement. SPP entitlements not taken up by eligible shareholders under this offer cannot be transferred.
Eligible shareholders are those investors recorded on the Company’s share register at 7pm Australian Eastern Standard Time on 2 September 2009 with either an Australian or New Zealand address. These shareholders can subscribe for up to A$ 15,000 worth of new fully paid ordinary shares. The Company has received an ASX waiver for the SPP.
The SPP will be capped at A$ 6,000,000. Patersons Securities Limited has been appointed as Lead Manager for the SPP by the Company. Full details of the SPP will be sent to eligible shareholders in the near future.
Use of funds: the funds raised from both the share placement and the SPP will be utilised as follows: (a) completion of the construction and operation of the Kingaroy Project pre-production facility in Queensland, (b) on-going drilling programs at other project sites, (c) forward design items for the Kingaroy Power Plant, and (d) on-going working capital requirements.
Dr Len Walker, Cougar Energy’s CEO, said: “These two capital raising initiatives represent Cougar Energy’s largest fund raising to date and confirms investors’ confidence in our corporate strategy, which is to become Australia’s leader in Underground Coal Gasification by focussing on the commercial development of reliable, low cost and efficient base load electricity generation from proven coal gasification technology.”
“These funds will be, in large part, utilised to enable us to move to the next significant milestone in our Company’s history, namely the ignition of the UCG process at Kingaroy, to produce pre-production gas for testing and evaluation,” Dr Walker said. “This triggers off a most exciting time in the Company’s development.”
The Company’s General Manager - Corporate Finance, Brad Glynne, said: “We now have an expanded share register with several Australian and overseas institutions and sophisticated investors subscribing for the first time.”
“This broadening of our funding base enhances our financial flexibility, particularly as we continue to evaluate the international financing opportunities for the Kingaroy power project,” he said.
CXY Price at posting:
8.8¢ Sentiment: Hold Disclosure: Held
