17th Mar 2015 17:47
LONDON (Alliance News) - Frontier Resources International PLC said Tuesday it has entered into a GBP1.7 million conditional subscription agreement with AGR Energy Ltd No.II to issue it with 170 million new shares at a price of 1 pence each, and grant it 53.3 million new warrants to subscribe for new shares in the next five years.
Shares in Frontier closed down 17% at 0.601 pence Tuesday.
AGR has also agreed to provide it with an interim short-term loan facility of USD200,000 for additional working capital. Frontier plans to use the funds to fund the further development and evaluation of its exploration projects in Oman, Namibia and Zambia, and for general working capital.
"AGR Energy brings significant oil and gas expertise and experience to Frontier. We look forward to working together as we progress with our existing projects in Oman and southern Africa, and as we evaluate new opportunities," said Chairman Neil Herbert in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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