Zenith Energy Limited
Zenith Energy Limited (ASX: ZEN), a global energy production and exploration company was founded in 2006. On February 12, 2019, the shares of the company soared up by 2.963% following its announcement of entering into a Power Purchase Agreement (PPA) with Kirkalocka Gold SPV Pty Ltd. With this new PPA, average PPA term of the company increased to 7.3 years, as per its Annual 2018 Report, leading to a probable long-term revenue.
On 3 May 2019, the company announced a two-tranche placement of approximately 43.10 million shares at the offer price of $0.58 per share. The company mentioned that it had received binding commitments for a $25 million placement to institutional and professional investors (Placement). ZEN would be inviting its shareholders to take part in a share purchase plan (SPP) to raise a further $5 million. Euroz Securities Limited was the Lead Manager and Bookrunner to this previously mentioned Placement.
The tranche 1 of this placement, worth 14.7m shares would be concluded, and the shares to be issued by 10 May 2019 would apply ZEN’s current placement capacity, which comes within ASX Listing Rule 7.1.
The Tranche 2 of the placement, of approximately 28.40m shares, including 3.12 million shares is to be subscribed for by the directors of the ZEN. The directors’ subscription would be funded 50% in cash, and then another 50% of it through ZEN’s loan, in association to which the interest and principal repayments are to be utilised. The Company will seek the necessary shareholder and regulatory approvals for tranche two Placement Shares and Shares to be subscribed for by Directors of the Company at a general meeting of shareholders to be held before the end of June 2019.
Also, the tranche 2 of the placement is subject to shareholder approval and is to be discussed on 18 June 2019. As per the company, the settlement of new shares issued under Tranche 1 would take place on 9 May 2019, and for Tranche 2 on 19 June 2019.
Share Purchase Plan details
The Australian and New Zealand Shareholders would be eligible for this placement. They would avail shares up to A$15,000, and the total proceeds of the SPP would be capped at A$5million.
In accordance to the share-holder’s approval, the two Directors of the company, Doug Walker and Hamish Moffat would participate in the placement for $1,000,000 and $750,000 respectively, where 50% of the amount would be funded via Company Loan Funded Share Plan.
The proceeds of this placement would be used to strengthen the balance sheet, general working capital and corporate purposes.
Prior to the above-mentioned issue of new shares pursuant to the Placement and SPP, shares on the issue were 98,000,000 at $0.66/share.
On the financial front, the PP&E increased from $75.9m in H2 2018 to $114.2m in H1 2019. The revenue guidance for FY19 ranges between $50m-$55m and the EBITDA lies between $19m-$21m.
As on 6 May 2019, the stock price of the company closed flat at A$0.595.
EMU NL (ASX: EMU) is a junior resource company, which is into gold exploration work. It was listed on ASX in the year 2008 and is domiclied in Perth, Western Australia.
In April 2019, the company had announced the drilling results and significant assays of gold and silver in Vidalita and Alunita prospects, depicting great potential for multiple mineralised systems.
On 3 May 2019, EMU had announced to make a placement to its sophisticated and wholesale investors (mostly existing shareholders). It agreed to raise $960,000 via a maximum of 20,000,000 fully paid ordinary shares (New Shares) at $0.048 per share. The approval to the same was granted at the shareholders’ meeting on 25 March 2019.
The proceeds of this issue would be used towards funding of the Company’s Chile gold projects and other existing mineral opportunities. EMU has the right to exercise its option towards the acquisition of 100% interest in Vidalita and Jotahues, from two companies Chile-based companies, named as Prospex SpA and BLC SpA.
Besides the placement, there would also be an issue of 2 free options (exercisable at 20 cents each on or before 15 January 2021) for every 1 share, subject to shareholder approval.
As on 6 May 2019, the stock price of the company closed flat at A$0.059, up by 3.509% from its previous price.
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