30/09/2014 - 13:46

Range secures $US15m for drill program

30/09/2014 - 13:46

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Range Resources has secured a US$15 million loan from John Hancock-advised Lind Partners to accelerate development drilling of Range’s Trinidad onshore assets.

Range secures $US15m for drill program

Range Resources has secured a $US15 million loan from John Hancock-advised Lind Partners to accelerate development drilling of Range’s onshore assets in Trinidad.

The money will be issued in two tranches; with the second tranche totalling $US5 million available at Range’s option, six months after the initial $US10 million is issued.

Mr Hancock was appointed as a Perth-based consultant to New York institutional investor Lind Partners in April, to advise on investments in the Australian resources sector.

“Range has a very attractive asset portfolio in Trinidad and we have confidence in their strategy to increase production,” Mr Hancock said in Range’s announcement to the ASX.

Perth-based Range is a dual-listed explorer with listings both on the Australian Securities Exchange and London Stock Exchange.

It holds 100 per cent interest in three onshore production licences in Trinidad, with further interests in Guatemala, Columbia, Texas and Georgia.

Range chief executive officer Rory S Russell said the loan agreement represented the most attractive financing option currently available.

“The financing provides us with the necessary funding to progress our near to medium-term ambitions in Trinidad – notably increasing our production and improving our drilling efficiency,” Mr Russell said.

“Once we have successfully made progress in these areas, we believe that we will be in a strong position to obtain longer-term finance.”

Range has the option of repaying Lind either through cash or Range shares, or a combination of both, although after six months from the initial drawdown, Lind has the option to convert any amount outstanding into ordinary Range shares.

As part of the loan agreement, Range will issue up to 46.5 million options in two tranches following the drawdown of the loan.

Range will also issue up to 38 million ‘collateral’ shares to Lind on the drawdown of each tranche of funds.

The issue of repayment and conversion shares is subject to shareholder approval at Range’s annual meeting in November.

The loan comes after Range announced a $US12 million placement of 712 million shares to Hong Kong-based institutional investment group Abraham in May, which was used to repay existing debt of about $US10.5 million.

Range shares were down slightly on the ASX, trading at 2.6 cents at 1.20pm.

 

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