Pura Vida, Primary to raise $5.4m

Perth-based explorers Pura Vida Energy and Primary Gold have announced their intention to raise capital to fund their respective projects.

Oil explorer Pura Vida said it planned to raise $4 million through the placement of 11.5 million shares at 36 cents per share, with managing director Damon Neaves saying the proceeds would be used to keep the company in a strong financial position while it embarked on exploration activities.

“The highlight ... is a significant drilling program offshore Morocco, where Pura Vida will be carried on for two firm wells,” Mr Neaves said.

“The first well of the program remains on track to spud in the latter part of this quarter, and has the potential to be transformational for Pura Vida and its shareholders.”

Meanwhile, Primary Gold plans to raise up to $1.4 million through a placement and a one-for-one rights issue, both of which are valued at 1 cent per share.

Primary said the new issues would provide additional funding to support the company as it works towards producing gold at its Toms Gully mine in the Northern Territory.

“Specifically, the proceeds from the issue will be used to complete an environmental impact assessment, a crucial step in attaining authorisations to resume mining at Toms Gully, as well as ongoing working capital requirements,” the company said in a statement.

The value of the rights issue represents a 44 per cent discount to the company’s last closing price of 1.8 cents per share.

Hartleys acted as lead manager in Pura Vida’s raising, while Patersons Securities was the lead manager to Primary Gold’s placement.

Primary Gold shares were unchanged at 1.8 cents, while Pura Vida dropped 4.9 per cent to close at 38.5 cents per share.