In addition to the placement, Kinetiko has launched a share purchase plan (SPP) to offer existing shareholders the right to subscribe for shares worth up to a further A$2 million at the same price as the placement.
Funds from the placement will be used to advance Kinetiko’s Amersfoort Project, including funding exploration and gas drilling.
Specifically, funds will be applied towards aeromagnetic surveys, exploration core drilling, interval test drilling, pilot production costs and general working capital purposes.
Aggressive exploration of multiple compartments
Kinetiko executive chairman Adam Sierakowski said: “This is the first capital raising undertaken by Kinetiko outside our existing shareholders for over four years and we are pleased to welcome a number of new institutional and sophisticated funds to the company’s register.
“To acknowledge the loyalty of our existing shareholders, we are complementing the placement with an SPP which enables Kinetiko to complete the 100% acquisition of Afro Energy (Pty) Ltd and aggressively explore its multiple high priority gas compartments identified through recent aeromagnetic surveys.
“The proceeds mean Kinetiko is funded to immediately start its exploration core and interval testing drilling program and develop pilot production scenarios at the Amersfoort Project to demonstrate its world-class potential.
“We will move forward with drilling as quickly as possible and have drilling planned and approved for over 12 months, creating regular newsflow and significant value for shareholders in the process.”
Negotiations with potential off-take partners
Kinetiko is also in advanced stages of negotiations with potential off-take partners and expects to update the market when a definitive agreement has been entered into.
Additionally, Kinetiko is planning to achieve the certification of a maiden gas reserve before the end of 2021.
Share purchase plan
Kinetiko’s A$2 million SPP gives each eligible shareholder the opportunity to apply for up to A$30,000 worth of new shares at an issue price of 10 cents per share, equal to the issue price under the placement.
The right to participate under the SPP will be available to eligible shareholders who were registered holders of shares at 5:00pm (AWST) on June 30, 2021, with a registered address in Australia or New Zealand.
Further details of the SPP will be set out in an SPP offer document anticipated to be lodged with ASX and sent to eligible shareholders on or about July 9, 2021.