27/05/2014 - 11:59

Tangiers finds new investor interest

27/05/2014 - 11:59

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Tangiers Petroleum has completed its second capital raising for the month after receiving "strong, unsolicited demand" from major investors.

Tangiers finds new investor interest

Tangiers Petroleum has completed its second capital raising for the month after receiving "strong, unsolicited demand" from major investors.

The oil and gas explorer told the market it has raised a further $4 million through a discounted share placement.

It completed a $5 million capital raising just two weeks ago, having initially aimed to raise up to $10 million.

Tangiers said it had been forced to scale back the initial placement due to cautious investor demand, following a prolonged supension from trade in the wake of a failed takeover bid for fellow oil and gas explorer Jacka Resources.

However investors appear to have changed their tune, with Tangiers today saying it had experienced strong interest from major investors for the remainder of the placement stock.

The company said it had raised a further $4 million through the placement of 25 million shares at 16 cents each, in line with its initial placement.

The issue price represents a 24 per cent discount to Tangiers' last closing price.

It comes as Tangiers looks to fund drilling at the TAO-1 well in Morocco, which Tangiers managing director David Wall has described as "a potential company-making opportunity". 

Mr Wall said the company believed it had struck the right balance between financial prudence and limiting shareholder dilution.

“We believed from the outset that a raising of $8-$10 million was the ideal amount given our possible outlays in relation to the well and our strategy to ensure that shareholders had the maximum possible exposure to drilling success," he said. 

“Strong investor interest in the well has now enabled us to achieve that initial target and as a result we are in a strong cash position as we await spudding.”

Tangiers is meanwhile pursuing a joint listing on the London-based AIM, appointing broker RFC Ambrian to advise it on the potential listing.

The company's shares were trading 2.4 cents lower at 20.5 cents at 11:44am WST.

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