West Perth-based Energy Ventures Ltd subsidiary African Energy Resources (Guernsey) Ltd will raise $651,000 through the final tranche of aseed placement to investors of shareholder African Lion 2 Ltd.
The full text of a company announcement is pasted below
Energy Ventures is pleased to confirm that its subsidiary African Energy Resources (Guernsey) Limited has recently completed the final tranche of its seed placement to exempt investors with the allotment of 875,000 shares to the investment group African Lion 2 Ltd at 30 pence each to raise GBP 262,500 (approximately US$500,000). The offer to African Lion 2 Ltd to participate in the placement was made at the same time and on the same terms as the other institutional and sophisticated investors that participated in the placement in late November 2006. This brings the total raised in the placement to GBP 2,887,500 (approximately US$5,500,000), with Energy Ventures now holding a 77% interest in African Energy.
Energy Ventures is extremely pleased to have African Lion 2 Ltd as a strategic shareholder in African Energy, with its experience and expertise in supporting and developing African exploration and mining projects.
African Energy Capital Restructure for IPO
Following the placement and to facilitate a listing on the ASX, the issued capital of the company is to be restructured by a 3:1 share split following board and shareholder approval. This will increase the total number of ordinary shares on issue in African Energy Resources (Guernsey) Limited from 45,125,000 to 135,375,000 and effectively reduce the price paid in the seed placement from 30p per share to 10p per share.
