Golden Gate Petroleum Limited (ASX:GGP) (“Golden Gate” or the “Company”) provides the following update on two funding initiatives that will be used to assist financing the drilling and completion of the Company’s first horizontal well (SRH #5H) in the Permian Project located in Reagan and Irion Counties, Texas, USA.
Secured Convertible Note Funding
As announced to the ASX on 13 August 2012, and as amended at the General Meeting on 19 September 2012 (under the shareholder approved new Resolution 7) Golden Gate is in the process of raising up to $5,000,000 by way of the issuance of Secured Convertible Notes (the “Offering”) on a best endeavours basis. The Offering will involve the issue of up to 100,000,000 Convertible Notes at a face value of $0.05 per Convertible Note. Further details of the Offering are in the ASX releases made on 13 and 21 (Notice of General Meeting) August, and 4 September (Addendum to Notice of Meeting), 2012.
Golden Gate shareholders are reminded that the Offering is being made to professional, sophisticated or other investors to whom the Company can offer the Convertible Notes without a prospectus under the Corporations Act 2001. The Offering, which will only be made to investors in Australia, will close at 5pm (Sydney Time) on Friday 5 October 2012. If Golden Gate shareholders believe that they are eligible to invest in this Offering, please contact William Mudd, Director Corporate Advisory Services, Novus Capital Limited, on (02) 9375 0100 or 1800 450 444 (Toll Free) or via email on william.mudd@novuscapital.com.au.
Underwritten Rights Issue Mandate
Golden Gate is also pleased to announce that it has signed a mandate with Novus Capital Limited (“Novus”) for an Underwritten Rights Issue. These further funds will be used for the Permian Project including the horizontal drilling program, other announced projects and administration expenses.
The Proposed Rights Issue is subject to the finalisation of due diligence and documentation including an Underwriting Agreement between the Company and Novus.
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