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LONDON - Petro Matad Limited (AIM:MATD), an AIM-quoted Mongolian oil company, announced Thursday its intention to raise a minimum of $2.25 million through a combination of share placing and subscription at 0.80 pence per share.
The capital raising price represents a 32.20% discount to the company’s closing price on July 9, according to the press release statement. The company plans to conduct the fundraising through an accelerated bookbuild process that opened immediately following the announcement.
In addition to the main placing, Petro Matad intends to offer up to 62.50 million new shares to existing retail shareholders in the United Kingdom (TADAWUL:4280) through a separate retail offer on the BookBuild Platform, potentially raising an additional £0.50 million.
The company’s CEO Mike Buck has indicated his intention to subscribe for approximately $50,000 worth of new shares, while Petrovis Matad Inc., the company’s largest shareholder, plans to subscribe for around $300,000 in new shares.
Proceeds from the capital raising will primarily fund efforts to reduce operating costs at the Heron-1 oil production site by switching from diesel-fired power to grid electricity. The company also plans to investigate potential production increases in Block XX by re-testing Heron-2 and testing Gazelle-1 and the Gobi-Bear 1 exploration well.
Any additional funds raised beyond the $2.25 million target will be directed toward developing renewable energy projects and exploring opportunities in the newly signed Block VII.
The share issuance falls within existing shareholder authorities granted at the company’s annual general meeting held on March 13, 2025, and therefore requires no further shareholder approval.
The subscription and retail offer are conditional on the placing, but the placing and subscription are not dependent on the retail offer.
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