Shale gas explorer Challenger Energy Ltd (ASX:CEL) announced that it has received commitments from shareholders to raise $900,000 via a private placement at $0.03 each.
Challenger Energy, through its South African subsidiary Bundu Gas and Oil Exploration Pty Ltd, is the first explorer to apply for exploration rights in South Africa’s shale gas province Karoo Basin.
Challenger will place of 30 million new fully paid ordinary shares at an issue price of $0.03 per share.
Subscribers will receive one unlisted attaching option for each share subscribed.
The shares and unlisted options will be placed to sophisticated investors.
Funds raised will be used for the progression of licence application process in South Africa, working capital requirements and to meet the costs associate with the offer.
Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.