CBM Asia to raise $15m through private placement
Thursday, March 7 2013 - 02:10 AM WIB
CBM Asia Development Corp. announces a non-brokered private placement of up to 71,428,572 shares at a price of C$0.21 per share for gross proceeds of up to C$15 million.
The net proceeds of the offering will be used to, among other things, fund the company's pilot production and/or exploration and development costs on its coal bed methane projects in Indonesia, pay ongoing general and administrative expenses and for unallocated working capital.
A cash finder's fee of up to 6 percent of the gross proceeds of the offering may be paid to eligible dealers and finders.
The offering is subject to the acceptance of the TSX Venture Exchange and is anticipated to close on or about March 29, 2013. All securities to be issued pursuant of the offering will be subject to a hold period of 4 months and 1 day.
"Resource appraisers from Netherland, Sewell and Associates, Inc. (NSAI) and CBM completion engineers from Advanced Resources International, Inc. (ARI) are conducting their detailed assessments of the Barito Basin CBM blocks in preparation for the company's drilling projects later this year,? states Al Charuk, President and CEO of CBM Asia.
He said that the funds raised from this private placement will be invested directly into the Barito Basin and Central Sumatra Basin production drilling with the goal of achieving first production by year-end, a critical milestone for CBM Asia. ?An MOU to sell gas from the Barito Blocks has already been signed," he said.
Editing by Benget Besalicto Tnb.