Buccaneer Energy Limited (ASX:BCC) is aiming to raise $9.3 million after executing binding agreements for the issue of 198 million shares at just under 5 cents per share.
The oil and gas developer has also executed agreements for an unsecured loan of $9.9 million, taking its total raising to $19.2 million.
The placement and loan were equally subscribed by three Asian based investors with a history of investment in the energy sector.
Proceeds from the placement and loan will go towards supporting the company’s exploration programs and upgrading equipment.
Director Dean Gallegos says the combination of equity and unsecured loans strengthens the company’s balance sheet and limits dilution of existing shareholders.
Buccaneer Energy reported a $16.3 million loss in the 2012 financial year.