Kinetiko Energy Limited has successfully completed a placement to institutional and sophisticated investors to raise gross proceeds of approximately $1.7 million. Proceeds from the placement will be used to fund the Company's pilot 5 spot production field and core hole drilling programs at the Amersfoort Project (49% KKO interest), structural studies, and investment in the preliminary appraisal of its Technical Cooperation Permits and additional working capital.
The placement was priced at 15.0 cents per share, representing a 22% discount to the 5-day VWAP1 and will result in the issue of approximately 11.34 million new shares. Kinetiko's Managing Director, Andrew Lambert, commented, 'This capital raising enables us to drill and appraise a small pilot test field (up to 5 wells) on the Amersfoort Project, following a technical review by mid January. If these wells are successful, the Company should secure early monetisation and maiden 3P reserves, which will set the Amersfoort Project on a rapid path towards commercial production planning'.