Ottoman to raise $4.4m with rights issue

West Perth-based mining company Ottoman Energy Ltd has announced a placement of 29 million shares, allowing the company to further develop their offshore oil sites in the Philippines.

Aiming to raise approximately $4.4 million through a pro-rata non-renounceable rights issue to eligible shareholders, the 29 million shares to be placed will be issued at a price of 15c each.

Money raised from the share offering will be primarily used to fully acquire the remaining 50 per cent of NorAsian Energy Ltd, a joint venture between Ottoman and AustralAsian Energy Ltd, with the remaining money being used to fund further exploration and for working capital.

Ottoman managing director Jaap Poll stated in an announcement to the stock exchange that full ownership of NorAsian's oil fields would enable the company to become a significant oil producer by the end of the year.

Ottoman has also entered into a farming out arrangement with Canada-based Bentley International Oil Ltd, giving the firm a 30 percent interest in the fields in exchange for approximately $12.5 million.

This offer is fully underwritten by Max Capital Ltd, with BDO Chartered Accountants and Advisors acting as auditor and Grange Consulting Group Ltd as consulting advisor to the company.

No applications for shares will be accepted after 5pm WST on July 28.