Uranium explorer WildHorse Energy Ltd has raised $20 million through a placement of convertible notes, with global investment bank Goldman Sachs subscribing most of the funds.
Uranium explorer WildHorse Energy Ltd has raised $20 million through a placement of convertible notes, with global investment bank Goldman Sachs subscribing most of the funds.
WildHorse will use the proceeds to accelerate developmet of its projects in Hungary and the United States.
A company announcement is pasted below:
WILDHORSE ENERGY MAKES $20 MILLION PLACEMENT
- $20m private placement of Converting Notes
- Funds raised will accelerate work on core projects, including JORC resource in Hungary by June 2007 and targeted production at Bison Basin by 2010
- Additional funds to secure development projects in Central Eastern Europe
SUMMARY
WildHorse Energy Limited (ASX:WHE) is pleased to announce that Goldman Sachs has become an investor in the Company, following a private placement of Converting Notes to institutional investors. Goldman Sachs, together with Goldman Sachs JBWere have subscribed collectively for $15m of the total $20m placement.
The placement is being undertaken by the issue of 10,000,000 Converting Notes at a face value of $2.00 per Converting Note. The Converting Notes automatically convert into ordinary shares between 5 November 2007 and 31 December 2007 or on the occurrence of certain other prescribed events.
WildHorse plans to use the additional funds for the ongoing development of its core assets in the United States and Europe into operational mines. In particular, the company is completing work on its initial geological evaluations at Bison Basin, Wyoming, and its Pécs Project in Hungary, with the aim of establishing JORC compliant resources in coming months. WildHorse will then immediately begin Scoping Studies at both projects, as well as a drilling program at Bison Basin to extend its resources.
WildHorse's growth strategy has targeted projects in several locations to give the company a truly global footprint, including a portfolio which spans advanced projects with potential for operation in 2010, through to exploration in highly prospective regions.
These regions combine geological potential with proximity to major markets seeking long term supplies of uranium to help achieve ambitious greenhouse gas emissions reductions and secure localised sources.
WildHorse has identified several targets for further exploration and development across Central Eastern Europe, close to the world's largest market for uranium, to fuel the growing demand for nuclear power in Europe. Funds will be used to secure and progress the evaluation of these projects, working with Governments and private companies.
WildHorse will also progress its evaluation of projects in Paraguay, South America and evaluate further opportunities in the historic uranium producing centres of the United States.
WildHorse Energy Managing Director, Richard Pearce said "We are delighted Goldman Sachs, has become an investor in our company. They have shown an interest in our performance, the uranium sector's potential and WildHorse's strategy to become an early and significant uranium producer in the world's largest-nuclear energy market."
Mr Pearce said that the private placement would provide additional capability for WildHorse to secure and invest in major projects.
Goldman Sachs is a leading global investment banking, securities and investment management firm. It provides a wide range of services worldwide to a substantial and diversified client base including corporations, financial institutions, governments and high net-worth individuals.
The $20m placement was arranged by Argonaut, the Perth-based Investment Bank and Corporate Advisor to WildHorse Energy. Existing institutional investors in WildHorse also participated in the Placement, including Geiger Counter and CPH.
