Buru Energy Ltd (ASX:BRU, OTC:BRNGF) has completed an oversubscribed share purchase plan (SPP), which has delivered approximately A$3.7 million.
The money raised from the SPP, along with the A$5 million raised in last month’s placement at 11.5 cents per share, will be used for the ongoing appraisal and development of BRU’s Rafael gas and condensate discovery in the Canning Basin of Western Australia.
The company received strong support for both the placement and SPP as it continues to progress the planned Rafael 2024 appraisal drilling program and commercialisation activities.
Buru believes there is a pathway to commercialisation for all realistic resource appraisal outcomes and is systematically progressing its on-ground appraisal activity, having recently completed the Rafael 3D seismic acquisition on time and on budget.
“The results of this capital raise through a strongly supported placement and the significantly oversubscribed share purchase plan is a testament to our investors’ confidence in our vision and the value we bring to the market, Buru Energy CEO Thomas Nador said.
“Buru is now well-positioned to maintain the momentum it has built over the year to deliver against a defined strategy to commercialise its Rafael gas and condensate discovery, and by doing so, generate maximum value for our shareholders.”
About the SPP
Buru announced the SPP on November 14, 2023.
The SPP sought to raise up to $2 million, with the Buru board retaining discretion to accept oversubscriptions over $2 million.
A total of 32 million new ordinary shares will be issued.
The new shares will be allotted on December 13, 2023, with trading of the new shares to start on Thursday, December 24, 2023.
All shares issued under the SPP rank equally with existing Buru shares.