NuEnergy launches A$6.9M capital raising to fund explorations

Australian energy company NuEnergy Capital Limited said it has launched capital raising worth A$6.9 million through private placement as well as through rights issue. The funds will be used to finance the drilling activities at its South Sumatera block, Muara Enim PSC as well as CBM exploration in Tanzania.

The company said it has completed the placement of 18.72 million of ordinary shares to sophisticated and institutional investors to raise $1.7 million.

In addition, it is also launching fully underwritten rights issue to raise $5.2 million. Under the rights issue scheme, existing shareholders that hold 5 shares as of 16 December, 2011, are entitled to purchase 2 new shares at the issue price of $0.09 per share.

The rights issue will be fully underwritten by Aspac Mining Ltd, Farjoy Pty Ltd and Calibre Investments Pty Ltd. The underwriting parties will be paid underwriting fees of 5 percent of the proceeds from the rights issue.

The board of NuEnergy has agreed that Intrasia Capital Pty Ltd, a related party of Chairman Graeme Robertson and non-executive director Jonathan Warrand, will receive a corporate advisory fee equal to 1.5 percent of the placement and rights issue proceeds for advising on those transactions.

It is expected that the prospectus offer document for the rights issue will be lodged with ASIC and ASX on 16 December 2012. The closing date for acceptance of rights is intended to be 31 January 2012. (roffie/romel)