Tangiers raises $7m for Alaskan venture

Oil and gas explorer Tangiers Petroleum has raised $7 million in a discounted placement to complete its acquisition of the Icewine project in Alaska.

In a statement today, Tangiers said the placement of about 700 million shares was made to investors at 1 cent per share.

The placement participants will receive a free attaching option for every two placement shares, exercisable at 2 cents each.

Tangiers will use the funds raised to complete its acquisition of the Icewine oil project in Alaska, and will fund future exploration activities at the project with its partner, US-based Burgundy Xploration.

Tangiers managing director David Wall said the strong support for the placement was a recognition of the upside potential that the project offers for investors.

“Project Icewine benefits from a unique combination of conventional and unconventional potential, along with generous rebates offered by the state of Alaska,” Mr Wall said.

“Planning and permitting for the drilling of our first well and acquisition of 3D seismic is already underway and we will be providing updates to the market on progress in the very near term.”

Hartleys acted as sole lead broker to the offer, while DJ Carmichael and BBY acted as co-managers.

Tangiers’ share price closed 16.6 per cent lower at 1 cent per share.