CBM Asia updates C$5m non-brokered private placement
Wednesday, August 7 2013 - 02:16 AM WIB
Vancouver-based firm CBM Asia Development Corp. provided an update on the C$5 million non-brokered private placement announced on July 26, 2013.
The company said in a statement obtained on Tuesday that the first retail tranche has been filled. A second retail tranche is currently being placed with indications of an additional C$1 million. Closing of the first retail tranche will take place immediately following the release of the company's pending operational update news release. The management tranche will be executed shortly thereafter.
The pending operational update will be released once approved by project partners and will highlight:
1. Barito Basin: development and potential changes to ExxonMobil Joint Venture
2. Sekayu PSC: test production flow results and recent completion of the CBMSE-01 core well
3. Kutai West PSC: upcoming production test
The statement said the offering is expected to close in several tranches including a management tranche of up to 10 percent of the total offering, several retail tranches and an institutional tranche.
A finder's fee of up to 6 percent cash and 5 perent finder's warrants may be paid to eligible dealers and finders in connection with the offering. Each finder's warrant will entitle the holder to purchase one common share of the company at a price of C$0.10 for a period of 12 months after closing.
The net proceeds of the offering will be used to, among other things, fund the production wells and/or exploration and development costs on its coal-bed methane (CBM) projects in Indonesia, pay ongoing general and administrative expenses and for unallocated working capital.
CBM Asia owns stakes in various coal-bed methane assets in Indonesia, including the Sekayu PSC, Hulu PSC, Kutai II PSC, Kutai-West PSC, Bentian Besar PSC and Kuala Kapuas I PSC.
Editing by Reiner Simanjuntak