Red Emperor Resources raises £2.8m in placing

Red Emperor Resources announced an oversubscribed placing to certain new and existing institutional and sophisticated investors, via its UK and Australian brokers on Tuesday, of 100 million new ordinary shares at an issue price of 2.8p each, to raise £2.8m before expenses.

The AIM-traded firm said the placing utilised its existing share capital authorities, and was conditional on admission of the placing shares to trading on AIM.

Following admission, the placing shares would represent 19.04% of the company's enlarged issued share capital.

“The net proceeds from the placing will be used to augment the company's general working capital and provide contingency, as the company prepares for the upcoming drilling of the Winx-1 exploration well and potential appraisal activities in the Alaska North Slope, where the company has a 31.5% working interest,” the Red Emperor board said in its statement.

“The Winx prospect is a 3D seismic defined conventional oil prospect in the successful Nanushuk play fairway with a gross mean unrisked prospective resource of 400 million barrels - 126 MMbbls net to Red Emperor - and is adjacent to the Horseshoe 1/1A discovery well drilled by the Armstrong/Repsol JV in 2017.”

In addition, Red Emperor Resources said it had agreed to issue, in aggregate, six million warrants to its brokers and corporate adviser, exercisable at a price of 2.8p per new ordinary share, for a period of 36 months from their date of issue.