The bulk of the funds will come from an institutional placing that will raise £8mln, with up to a further £2mln to come from an open offer to existing shareholders at a price of 1p per share.
In addition, the repayment date of Aminex’s US$8mln loan facility has been deferred until July 2015, while £0.75mln of short term debt will be swapped for equity.
The company said the money raised would strengthen its financial position while it seeks a longer term solution to fund a larger programme of drilling and seismic in Tanzania.
Aminex’s assets in the country are the Kiliwani North gas field, which is expected to begin production in early 2015; the Ruvuma PSA, including the Ntorya-1 discovery, where a seismic programme is currently underway; and the Nyuni Area PSA.
Jay Bhattacherjee, Aminex’s chief executive, said: “The management team is looking forward to transitioning Aminex from an exploration focused business to a well rounded production, development and exploration company, with first African gas production expected approximately one year from now at Kiliwani North.”
– Tanzania Daily News