7th Nov 2014 09:15
LONDON (Alliance News) - Sirius Petroleum PLC Friday said it is making progress on plans to raise funds through the issuance of a convertible loan and an equity fundraising, as it looks to secure USD30 million in order to proceed with its development plans.
In a statement, Sirius Petroleum said it is progressing discussions for a USD15 million convertible loan with a Dubai-based energy-focused firm it did not name. The potential investor has begun its standard due diligence process, according to the statement.
The company also said it is in the final stages of completing a USD15 million equity raising from new and existing shareholders, and by the close of business on Thursday, Sirius Petroleum had received commitments for USD11.75 million on the fundraising.
The convertible loan and the equity fundraising are inter-conditional.
Last month, Sirius Petroleum said it had provisionally raised USD20 million through a conditional placing and subscription and was looking to raise further funds to put its Ororo oil and gas field into production.
"The outstanding conditions of the placing and subscription have not been satisfied by the long stop date of 7 November 2014, hence the conditional placing and subscription have now lapsed," Sirius Petroleum said on Friday.
According to Sirius Petroleum, the majority of the new and existing shareholders participating in the final stages of the new equity funding round also took part in last month's placing and subscription.
"I am grateful for the support of new and existing shareholders in participating in the equity fundraising, which we hope to conclude shortly whilst we finalise the terms of the convertible loan," Chief Executive Bobo Kuti said in a statement.
Sirius Petroleum shares were down 1.6% at 3.00 pence on Friday.
By Samuel Agini; [email protected]; @samuelagini
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