Strong support for Red Sky $4m raising

West Perth-based Red Sky Energy says it will proceed with the acquisition of private company Cydonia Resources after its $4 million share placement closed oversubscribed.

The company received strong support for the subscription of up to 200 million shares at two cents each, a discount to today's closing price of 3.7c, up 0.2c from yesterday's close.

The placement was managed by Indian Ocean Capital. It is also subject to shareholder approval with a shareholders meeting scheduled tomorrow.

Cydonia holds rights to earn up to a 100 per cent interest in two coal seam gas project in the Surat Basin in Queensland.

Red Sky will issue 150 million of its shares and 150 million unlisted options to acquire Cydonia, with funds raised from the placement to go towards exploration work.