South Perth company Central Petroleum has completed a capital raising as speculation continues over control of its board and the role of mining magnate and investor Clive Palmer.
The company said today it has raised $11 million at 8.5 cents per share, a discount of just six per cent to its recent trading price.
Participants in the placement also received one free three-year option exercisable at 12.5 cents, for every two new shares.
Patersons Securities managed the placement, which Central said was to a “very limited number of globally significant institutions”.
Central said the funds would be used for further appraisal and drilling on its Sunrise prospect in the Amadeus Basin.
One week ago, the company terminated the employment of chief executive John Heugh, however Mr Heugh remains a non-executive director.
Mr Heugh subsequently joined with other shareholders, who collectively hold 10.1 per cent of Central’s stock, to requisition a meeting to replace three of the company’s four directors.
There has also been heavy turnover in the company’s stock, and reports that Mr Palmer has become a substantial shareholder.