Search Share Prices
Reabold increases Corallian stake in fundraising bid
Reabold Resources may expand its stake in Corallian to 32.9% through participation in fundraising to support the company's operations, the company said on Thursday.
Reabold, an investor in upstream oil and gas projects, has signed two subscription agreements with Corallian, the first being an unconditional subscription for £500,000 of new shares and the second giving the option for £500,000 new shares at any point up to 6 April.
The first agreement expands Reabold's issued share capital in Corallian to 28.5%, with the second option purchase boosting that to 32.9%.
The Corallian fundraisers are an attempt to raise additional capital in order to increase its exposure to the Colter prospect from 40% to 50%, to the Wick prospect from 25% to 40% and to develop its additional assets such as the Oulton Prospect.
Stephen Williams, co-chief executive of Reabold Resources, said: "We are delighted that Corallian has successfully funded the drilling of the low-risk, high-impact Colter and Wick prospects at meaningfully higher equity interests than initially planned, and that the fundraise has taken place at an increased valuation relative to our initial investment in November last year."
Reabold's initial investment into Corallian comprised £1.5m in two tranches giving it a 35.4%, before this was diluted by the issue of new shares.
The company said its strategy is to reinvest capital made from investments into progressively larger projects in order to grow the company, with a particular focus on undervalued, low risk projects with a clear exit plan.
Sachin Oza, co-chief executive of Reabold Resources, said: "We continue to believe that this is the ideal time to deploy capital in line with our strategy, and look forward to an exciting year with multiple transformational drilling events."
As of 1403 GMT, Reabold Resources' share price was down 7.41% at 0.63p.