Bow to raise $50m to fund plant development
Bow Energy Limited (BOW) said it has entered into binding commitments to raise a minimum of $50 million via a capital raising to fund the development of a 30 megawatt gas-fired power station to be fuelled by gas from the company’s Blackwater CSG field in Central Queensland. The company said funds would also be allocated to further exploration and appraisal of the Bow’s CSG tenements and other corporate and offer costs and to provide additional working capital.
Bow said the capital raising would include an institutional placement of 32 million shares at $1.25 per share to raise $40 million and a share purchase plan (“SPP”) underwritten to $10 million which would be offered $1.25 per share.
The company said the SPP raising would be capped at $37 million.
Managing director Ron Prefontaine said following the completion of the equity raising the company would have up to $95 million cash (after costs) available to put towards the company’s exploration, appraisal and development plans.
Bow said the issue price represents a 14% discount to the average closing price of Bow Energy's shares in the five days prior to the annoucement of the equity raising.
As at 1312 AEDT, Bow Energy shares were down 12c to $1.40.
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