15th May 2014 10:42
LONDON (Alliance News) - Range Resources Ltd Thursday said it has secured USD12 million in financing through a subscription agreement with Abraham Ltd, a Hong Kong-based private investor.
The hydrocarbon exploration firm said Abraham will subscribe the USD12 million in cash and will be issued with shares at a price of 1 pence per share, which it said is a 49% premium to the mid-market share price of the company at market close Wednesday. Range Resources shares were up 12% at 0.75 pence Thursday, putting it in the top ten AIM ALL-Share risers.
The company said that at current exchange rates the subscription will be for roughly GBP7.1 million and will result in the issue of roughly 712 million new Range Resources shares through two equal tranches.
Range Resources said it will use the cash to repay some of its existing debts, which were at roughly USD10.5 million on April 30, and for working capital purposes.
"The USD12 million subscription will allow us to refinance the expensive and dilutionary corporate debt and provide working capital as we now move forward with Range's operational and long term financing objectives, particularly in Trinidad," Chief Executive Rory Scott Russell said in a statement.
By Tom McIvor; [email protected]; @TomMcIvor1
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