Petroleum Africa
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Friday, December 13, 2019
FAR Limited announced a conditional placement to raise A$146 million at A$0.0425 per share (Placement). In addition, FAR will conduct a share purchase plan to existing eligible shareholders to raise up to a further A$30 million at the same price as the Placement (SPP), together, the Equity Raising.
The proceeds from the Placement form part of the planned financing package to fund FAR’s capex to first oil for the Sangomar Oil Field development, offshore Senegal, working capital and transaction costs. Use of funds
FAR intends to use proceeds from the Placement and SPP for the following purposes:
million senior debt facility (refer ASX announcement 14 November 2019), and a junior debt
facility of up to US$150 million, proceeds from the Placement will be used to fund FAR’s share
of capex to first oil of US$492 million (which includes a 10% contingency);
post first oil.
The Placement price of A$0.0425 per share represents a 21.3% discount to FAR’s last closing price on Monday, 9 December 2019 of A$0.054 per share and a 12.0% discount to the 5-day VWAP.
The shares issued under the Placement are conditional upon gaining shareholder approval at a General Meeting to be held on or around 16 January 2020 and on the receipt of a credit approved Term Sheet for an underwritten US$350 million senior debt facility by 31 December 2019.
New shares issued under the Placement will represent approximately 35.4% of the enlarged share capital of FAR, which will have 9,715,681,158 ordinary shares on issue. New shares issued via the Placement and SPP will rank equally in all respects with existing ordinary shares. Further information in relation to the Equity Raising is set out in the Investor Presentation released by FAR to ASX on Thursday, 12 December 2019. The Investor Presentation contains important information including key risks and foreign selling restrictions with respect to the Equity Raising.
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