HyTerra Ltd (ASX:HYT) is looking to raise $1 million before costs via the issue of 50,000,000 fully paid ordinary shares at an issue price of A$0.02 per share.
The well supported Placement will help HyTerra progress its natural hydrogen exploration activities and strengthen its position in the Mid-West, USA.
HYT is focused on pioneering the exploration and production of natural hydrogen and has a non-operated interest in a Joint Development with Natural Hydrogen Energy LLC and 100% owned and operated leases on the Nemaha Ridge, Kansas, USA.
“We thank our new and existing shareholders for their support, which allows HyTerra to progress our natural hydrogen exploration projects significantly,” Hyterra executive director and chief technical officer, Avon McIntyre, said.
“Our first priority is to accelerate the exploration program areas in the Nemaha Ridge leases, where natural hydrogen has been observed in multiple drilled oil and gas wells. The airborne Gravity Gradiometery and Magnetic geophysical survey acquired in June 2023 highlighted multiple prospective locations. We will continue building our strong position to have a healthy set of drillable leads to mature.”
Use of funds
Breaking down the work to be done, HYT will use the money for the following:
- exploration activities including leasing and drilling of prospective locations in the Nemaha Ridge area; and
- ongoing evaluation of Project Geneva in Nebraska.
About the Placement
HYT has firm commitments to raise A$1.0 million with the Placement to professional and sophisticated investors is to be conducted in 1 tranche.
A total of 50,000,000 Placement shares are to be placed at an issue price of A$0.02. This offer price of A$0.02 per Placement Share represents:
- same closing price as on October 11 2023; and
- a 3.2% discount to the ASX VWAP for the 15 trading days prior to 12 October 2023.
Participants to the Placement will also be issued 2 free attaching Placement Options for every 3 new Placement Shares subscribed for and issued.
The Placement Options will have a two-year term and an exercise price of $0.03 and will be offered under a prospectus to be lodged with the ASIC and ASX on or around October 20, 2023.