Gold prices just lower; monthly gains on track
CALGARY, ALBERTA - Touchstone Exploration (OTC:PBEGF) Inc. (TSX, LSE:TXP) announced Thursday a correction to its previous release concerning a private placement and acquisition financing update. The corrected exchange rate is now set at 1.00 to 1.33 USD, amending the information provided on May 8, 2025.
The company has successfully completed a private placement, raising £15.375 million (approximately US$20.5 million) through the issue of 75,000,000 new common shares to institutional and other investors in the United Kingdom (TADAWUL:4280). The placement price was set at 20.5 pence per share, representing an 11.8 percent discount to the closing price on the AIM market of the London Stock Exchange (LON:LSEG) on the day prior to the announcement.
The new common shares are expected to be admitted for trading on both the Toronto Stock Exchange and AIM on or before May 15, 2025, subject to necessary approvals. The proceeds from the private placement are earmarked for the development of certain wells and additional working capital, replacing the previously planned debt facility expansion for the 2025 capital budget.
Touchstone also disclosed it has signed a binding term sheet with Republic Bank Limited for a $30 million term loan to partially fund the acquisition of Shell Trinidad Central Block Limited. The acquisition, set to close in the second quarter of 2025, is considered transformational for Touchstone, potentially increasing production to between 8,000 and 9,000 barrels of oil equivalent per day in the second half of 2025.
The acquisition will add approximately 2,000 barrels of oil equivalent per day to Touchstone’s net production, with gross field estimated production from the Central block at about 17.5 million cubic feet per day of natural gas and 185 barrels per day of natural gas liquids from March 1 through April 15, 2025.
Touchstone’s issued share capital will increase to 311,460,661 common shares post-admission, with the new shares ranking pari passu with the existing issued common shares. The private placement is not contingent upon the completion of the acquisition.
The announcement, based on a press release statement, corrects the currency exchange rate details and reiterates the company’s strategic financial moves to support its development and acquisition activities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.