Po Valley shareholders approve $9m deal
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Shareholders in Perth-based Po Valley Energy Ltd have cleared the way for the gas explorer to
complete a capital raising package totalling $8.75 million with US funds manager, Harbert Management Corporation.
This follows the go-ahead given at a general meeting of shareholders in Sydney
today for Tranche 2 of the package, the issue of 2 million ordinary shares at $0.70
per share, to raise $1.4 million.
The proceeds will be used for working capital.
The shareholder approval today is in addition to Tranche 1 in which Po Valley raised
$7.35 million This transaction did not require shareholder approval.
Proceeds of Tranche 1 are being assigned to accelerating Po Valley's exploration
and development program for its gas projects in northern Italy, where test results
over several gas zones encountered in the Sillaro-1 deviation well, are expected by
this weekend.
The total placement to Harbert, which has a US$4.7 billion diversified investment
portfolio, gives the US fund a 15 per cent interest in Po Valley's enlarged share capital of
82.5 million shares, ranking it as the second largest shareholder in the Australian
explorer.