Madagascar Oil has announced agreed terms for a new financing transaction, which is expected to secure the company approximately US$78.4mn
The proceeds are expected to be raised through a pre-emptive issue of common shares at a subscription price of approximately US$0.27 per common share.
It is expected that the pre-emptive share issue will be completed by 18 February 2013 and that the original bridge loan will be repaid from the proceeds.
Andrew Morris, chairman of Madagascar Oil, said, “The announcement of today's equity financing is another important step forward for Madagascar Oil. Securing this funding will enable us to move forward with the Tsimiroro Steam Flood Pilot, which represents not only a key moment for all our shareholders, but also for the people of Madagascar as we move ever closer to demonstrating the commercial potential of the significant Tsimiroro heavy oil deposit.
“I would like to thank our shareholders for their ongoing support and for their endorsement of the new board. We look forward to providing updates on our progress in the field, as the steam flood pilot gets underway,” Morris added.
