06/11/2013 - 12:03

Hancock boosts Sun Resources stake

06/11/2013 - 12:03

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Gina Rinehart's Hancock Prospecting is set to boost its stake in oil and gas explorer Sun Resources, agreeing to invest a further $2 million in the company in exchange for around 65 million shares.

Hancock boosts Sun Resources stake

Gina Rinehart's Hancock Prospecting is set to boost its stake in oil and gas explorer Sun Resources, agreeing to invest a further $2 million in the company in exchange for around 65 million shares.

The placement, at an issue price of 3 cents per share, will take Hancock subsidiary Winform Nominees' stake in Sun to just more than 21 per cent.

Hancock emerged as Sun's largest shareholder in August, investing $13.5 million in exchange for an 18.48 per cent interest in the company.

Sun will raise a total of $6.3 million through the placement of shares in a single tranche, including the $2 million Hancock placement.

Hartleys and Bell Potter Securities are joint lead managers in respect of the placement.

Sun said the placement would ensure it is fully funded for an upcoming multi-well program across its lease portfolio in Texas.

Its shares were unchanged at 3.6 cents at 12:00pm WST.

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