Shares in Range Resources Limited (ASX:RRS, LON:RRL) have surged after confirming it has received $US12 million from a Hong Kong-based private investor Abraham Limited.
The dual-listed oil & gas exploration company flagged the subscription agreement a fortnight ago under which Abraham will be issued with shares at a price of 1 pence per share.
Under the terms of the deal Abraham will be issued shares in two equal tranches, subject to shareholder approval. Upon completion of the two tranches Abraham is expected to hold about 15 per cent of the enlarged share capital of the company.
Range Resources says the funds will be used to repay existing debt and for general working capital.
Shares in Range Resources had surged more than 30 per cent in morning trade to $0.04.
Range Resources reported a net loss of $20.3 million in the first half of the 2014 financial year.
