The Company will also undertake a Share Purchase Plan (SPP) for existing shareholders. The placement was made to a number of Buru's major shareholders as well as new institutional and professional investors who are strongly supportive of the Company's progress and direction in appraising and providing a commercialisation pathway for the Rafael gas and condensate discovery. The Company is also providing its wider shareholder base with the opportunity to participate in the raising at the same price as the Placement through the SPP. The funds will be used to ensure that preparations for the planned 2024 appraisal drilling program maintain their current momentum and the Company is fully funded through its current program of partner selection and commercialisation activity.
Commenting on the capital raising, Buru's CEO
Use of Proceeds
The funds raised will supplement Buru's existing cash reserves and provide support for ongoing appraisal and development activities including ensuring that Long Lead Items required for the planned 2024 appraisal drilling program are available. Lead times for procurement of oilfield equipment can be up to 12 months and to ensure these are available for planned drilling programs, commitments are required in a timely fashion. The Company is confident that the commitments for Long Lead Items facilitated by this capital raising will ensure that the necessary well equipment is available as required for the 2024 drilling program. The remainder of the funds from this capital raising will be applied towards costs associated with drilling program planning as well as regulatory and environmental approvals, ongoing native title negotiations and community engagement as part of progressing the appraisal and development planning of the Rafeal discovery, as well as for general working capital purposes.
Placement Details
The Placement price of
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