New shares will be sold at a price of 0.6 Australian cents (equivalent to 0.33p) per share. It represents a 25% discount to the closing price on Monday November 16, and, 13.6% on the volume-weighted price over the preceding 30 days.
The explorer – which is presently advancing farm-outs for its Peregrine and Icewine projects – said the fundraise will support the ongoing evaluation of the conventional and unconventional prospectivity.
It is also expected allow the company to identify and exploit new opportunities on the North Slope of Alaska.
Specifically, it highlighted that the proceeds will strengthen the company’s balance sheet, fund 88 Energy’s share of potential costs of drilling at Peregrine, fund payments due in Alaska over the next twelve months, fund new venture opportunities and provide working capital.
The placing is being pursued via a bookbuilding process managed by Cenkos in the UK and EurozHartleys Ltd in Australia.