The Board of Golden Gate Petroleum Limited (ASX:GGP) is pleased to announce that it has entered into an agreement with Novus Capital Limited “Novus” to raise an additional AUD 2.9 million through a private placement with professional, sophisticated and other investors.
A total of 223 million shares will be issued at $0.013 (1.3 cents) with a free attaching listed option with an exercise price of $0.05 (5 cents) and an expiry date of 31 December 2014.
The issue of the listed options and ordinary shares to the approximate value of AUD 0.5 million will be the subject of shareholder approval at a soon to be called general meeting of the company.
In addition a further AUD 220,000 of series 2 convertible notes have been issued.
The Company currently has 4 producing wells in full operation. 4 additional wells which have already been drilled are in various stages of completion. The added four wells are expected to more than double production from current reported levels over the next few months.
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