Zenith to raise $25m

Zenith Energy is seeking to raise $25 million via a share placement to fund equity requirements for ongoing construction of power generation and infrastructure projects.

Under the share placement, Zenith will offer shares at 58 cents each, which represents a 6.5 per cent discount to its volume-weighted average price for the 10 days to April 30.

In December, Zenith increased its corporate debt facilities to $80 million, providing $40 million of facility headroom.

The share placement will be used to increase its equity in light of the higher debt levels.

Zenith has 11 contracts to build, own and operate remote power stations with an average remaining term of 6.6 years, and said it has over 400 megawatts of near-term pipeline of future projects.

Two days ago, it announced the completion of a 62 megawatt diesel power station for Newmont’s Tanami gold mine in the Northern Territory, its largest project to date.

Euroz is the lead manager to the raising.