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ICON Energy (ASX: ICN) has undertaken a capital raising venture to fund its continued operations in the Cooper Basin gas field, which will include fraccing and an additional exploration well in the promising ATP855 tenement.
The Broadbeach Waters-based junior explorer has secured $10 million from institutional and professional investors by selling about 45.5 million new shares at $0.22 each, it announced today.
Icon will make the offer available to private investors at the same price through a share purchase plan (SPP) this month, with a limit of $15,000 per shareholder and to be capped at a level decided by the directors.
It is an 18.5 per cent discount on Icon’s last closing price of $0.27, before it went into a trading halt on Monday.
The price dropped to $0.23 when the shares came out of the trading halt this morning.
The proceeds will be used to fund activities in the Cooper Basin, specifically Icon’s contribution to Halifax-1 well costs ATP855, including fracture simulation, plus an additional exploration well in the same tenement.
Icon managing director, Ray James (pictured), says there was strong demand from both existing shareholders and new investors and is “pleased to provide the opportunity for existing shareholders to subscribe through the SPP at the same price as the placement.”
Fellow Gold Coast explorer, CuDeco, came out of a three-week trading halt yesterday after announcing a $30-million capital raising.
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