Molopo Energy Ltd (ASX:MPO) announces $60 million equity raising

Company News

Oil and gas company Molopo Energy Ltd (ASX:MPO) has announced a $60 million equity raising to accelerate exploration and development in its Canadian oil projects.

The company says it is undertaking a fully underwritten equity offer, comprising $28.5 million in shares to be offered in a one-for-seven accelerated renounceable entitlement offer at an issue price of $1.03.

The price is 21.4% below Molopo’s $1.31 closing share price on Friday.

Shareholders will also be able to buy up to $31.5 million through an institutional share placement, with the price to be determined in a bookbuild.

Full details of the retail component of the offering will be lodged with the ASX on March 22.

The institutional offer opens today and closes tomorrow, while the retail offer opens on March 22 and closes on April 9.

Last week, the company reported earnings for the first half of fiscal 2010 of $5.7 million.

Molopo Energy posted a profit of $72.59 million for the 2009 financial year.