Bounty advances Liberia plans with $2.09 million placement

$2.09 Million Raised for Liberia Transaction

Bounty Oil & Gas NL (ASX:BUY) has completed the first leg of its latest capital raising, issuing 174,260,260 ordinary shares at $0.012 each for proceeds of $2,091,123 before costs.

The money is intended to help fund the cash consideration for Bounty’s acquisition of PetroQuest Liberia Deep Water LLC, alongside costs associated with offshore Block LB-32. Those costs include the production sharing contract and reprocessing of TGS Sunfish 3D seismic data, as well as the company’s existing projects, transaction expenses and general working capital.

Liberia Acquisition Funding Still Has Conditions

The placement is tied to Bounty’s push into Liberia, where the company previously pursued a 2,322 square kilometre deepwater exploration block through its Liberia acquisition agreement. The current announcement does not provide an updated cash consideration figure for the acquisition or confirm that the Block LB-32 production sharing contract has been executed.

Tranche 1 was issued under Bounty’s existing placement capacity pursuant to ASX Listing Rule 7.1. The new shares rank equally with the company’s existing ordinary shares, increasing the number of shares on issue, although Bounty did not state the post-issue capital structure in this announcement.

Second Tranche Awaits Shareholder Vote

The remaining Tranche 2 shares have not yet been issued. Their release is subject to shareholder approval at Bounty’s annual general meeting, which the company said will be held in due course. That vote is now the next clear funding milestone attached to the September placement.

Bounty’s cleansing notice states that the issued securities were placed without disclosure under Part 6D.2 of the Corporations Act and that no excluded information was outstanding at the date of issue. It also says the issue is not expected to have a material effect on control of the company. The more consequential question is whether the remaining capital can be secured while the Liberia transaction and Block LB-32 work progress.