Golden Gate Petroleum Limited (ASX:GGP) (“Golden Gate” or the “Company”) provides the following update on its recent capital raising initiatives that will be used to mainly fund the drilling, fracture stimulation and completion of the Company’s first horizontal well, SRH #5H, at the Permian Project located in Reagan and Irion Counties, Texas, USA.
Secured Convertible Note Funding
As announced to the ASX on 13 August 2012, the Company signed a mandate with Novus Capital Limited (“Novus”) to raise up to $10 million by way of the issuance of 200,000,000 Secured Convertible Notes each with a face value of $0.05 (the “Offering”) on a best endeavours basis, subject to shareholder approval. At the shareholders meeting held on 19 September 2012, the resolution to approve the Offering was amended to be for the issue of up to 100,000,000 Secured Convertible Notes to raise up to $5 million. As reported to the ASX on 16 November 2012, $1,950,000 has been raised through the issue of 39,000,000 Secured Convertible Notes via the Offering. Novus is targeting the remainder of the $5,000,000 by 5pm (AEST) Wednesday, 19 December 2012, and has received several expressions of interest from parties who wish to participate in the Offering. The funds raised from the Offering will be directed primarily towards the drilling program associated with the SRH #5H well.
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