Talon raises cash as it takes stake in Mongolian project www.miningweekly.com
PERTH (
miningweekly.com) – Oil and gas explorer Talon Energy will raise A$12-million in a share placement and will acquire a 33% participating interest in a production sharing agreement over the Gurvantes coal seam gas project, in Mongolia.
The ASX-listed Talon on Thursday announced that it would place some 85.7-million new shares at a price of 14c each, with the placement well supported by existing institutional and sophisticated investors.
“The success of the placement has provided Talon with a sound financial footing as it moves into its next phase of growth, the development of its portfolio,” aid MD Colby Hauser.
“With the success of placement the company has been able elect to take a 33% participating interest in the Gurvantes XXXV joint venture (JV), where our election to commit to the JV required the company to commit to fund the first $3.15-million of expenditure of the Stage 2 pilot well program, and 33% of ongoing expenditure at Gurvantes, as well as pay an additional $809 333 to TMK, based on the recently announced 1.2 Tcf 2C contingent resource for Gurvantes.
“The placement has also removed the uncertainty around funding for the coming months as the company works towards finalising negotiations to secure a debt facility to fund the development at Walyering, which will only become available to draw on following the achievement a near term project milestones.”
Commercial production from the Walyering project is planned for the first quarter of 2023.
Talon said on Thursday that In conjunction with the funds received through the placement, discussions on a debt facility to fund the development of Walyering, are continuing, and are well advanced. Once finalised, the company will be fully funded for forecasted activities through to first revenues at Walyering, and Gurvantes activities to the end of the 2023.
EDITED BY: CREAMER MEDIA REPORTER
Published Date:2022-12-01