Mosman Oil & Gas (MSMN) has raised £1.67 million via a placing of 7.4 million shares at 0.025p per share.
Mosman will also offer existing eligible shareholders the opportunity to participate in a retail offer of new ordinary shares at the placing price that aims to raise up to an additional £500,000.
The retail offer will close on 21st October, and there is a minimum subscription of £250 per investor.
The money raised will be used to advance Mosman’s portfolio of helium projects in the United States. Two projects in Colorado, Sagebrush and Coyote Wash, represent the company's key near-term development priorities.
Funds raised from the placing will be combined with the current cash balance of approximately £1.2 million and used to make Sagebrush and Coyote Wash drill-ready.
Specifically, the funds will be earmarked towards progressing the independent prospective resource validation at Coyote Wash, as well as conducting 3D seismic at Sagebrush, extended well testing, well planning and securing long lead items, and surface facility design. Some funds will also be allocated to field operations and administration and for general corporate purposes
"This successful Placing provides the capital needed to drive the next phase of development across our world-class helium assets in Colorado,” said Carl Dumbrell, chairman of Mosman Oil and Gas.
“The coming quarters will be an exceptionally active period for Mosman as we complete 3D seismic at Sagebrush, progress the Coyote Wash resource validation and prepare for and conduct extended well testing.”
View from Vox
This fundraise will provide Mosman with a sizeable warchest to deliver plenty of progress across its helium portfolio. The signs are that there is already significant real value on offer both at Sagebrush and Coyote Wash, but the real test will be the drilling. Mosman can now move rapidly in that direction with bolstered balance sheet strength, and begin to prove that the value is more than hypothetical.