Kinetiko Energy (ASX:KKO) has raised $584,400 through a placement of shares priced at $0.035 to institutional and sophisticated investors.
This represents a 22% discount to the last closing price of $0.045.
Proceeds from the placement will be used to further the negotiations with potential funding partners in South Africa, exploration of the company's southern African projects and additional working capital.
This will move its Amersfoort coalbed methane project toward commercial production, potential first revenues and maiden reserves.
In late August, the company and its partner Badimo Gas Pty Ltd received a non-binding expression of interest (EOI) from Development Bank of Southern Africa to provide preparation funding for Amersfoort.
This is subject to proving their capacity to co-finance the project, confirm continued validity of concession with off-taker and positive due diligence.
It follows the receipt in July of a separate non-binding EOI from Industrial Development Corporation to fund development of the Amersfoort project through either debt or equity, subject to IDC’s own due diligence.
Kinetiko remains in discussions with several other potential funding and off-take parties.
A memorandum of cooperation was also recently executed with potential gas off-taker Gigajoule International (Pty) Ltd (“Gigajoule”) to investigate and pursue an opportunity for the supply of methane rich gas from within certain areas on the ER56 tenement at Amersfoort.
