With AUD 38M capital raising, Calima Energy comes closer to Blackspur’s acquisition


  • Calima Energy Limited (ASX:CE1) has completed AUD 38-million capital raising to fund the Blackspur acquisition.
  • The completion of the Blackspur acquisition is expected soon.
  • Calima anticipates being reinstated to trading on the ASX on 3 May 2021.

Marking a significant development, oil and gas player Calima Energy Limited (ASX:CE1) has completed a capital raising worth ~AUD 38 million via retail offer and institutional placement. Calima has raised this substantial capital to fund the Blackspur Oil Corp. acquisition, which is likely to be completed soon.

In March this year, the Company received firm commitments totalling AUD 37 million for the retail offer (AUD 6 million) and conditional placement (AUD 31 million) to institutional and sophisticated investors. Interestingly, the Placement saw strong demand from existing shareholders as well as new investors, including top-notch international and domestic institutions.

Related Read: Calima Energy Raising A$37M to Fund Blackspur Oil Acquisition

Details of Capital Raising

Calima has completed a capital raising of over 5.4 billion fully paid ordinary shares under the retail offer, pursuant to a prospectus dated 10 February 2021 and institutional placement, as confirmed on 26 April 2021. These fully paid ordinary shares were issued at an issue price of AUD 0.007 per share, raising AUD 37.9 million (before costs).

The shares under the capital raising were issued by the Company in a single tranche following the shareholder approval in the General Meeting. The Company held a General Meeting on 15 April 2021, in which the shareholders approved the acquisition of Blackspur Oil Corp.

Notably, Calima received substantial demand in the retail offer. Besides, scale backs have been applied, which will be remitted back to the investors on 30 April 2021.

The Company will use the funds raised under the capital raising for the following purposes:

  • Cash component of the Blackspur acquisition,
  • Paydown Debt of Blackspur,
  • Pay for the costs of the acquisition, and
  • For working capital purposes.

Significance of Blackspur Merger

In February 2021, Calima entered into a conditional binding agreement to acquire 100 per cent of the issued capital of Blackspur, a corporation existing under the laws of the Province of Alberta, Canada. Blackspur owns producing oil and gas assets in two fundamental areas, Brooks and Thorsby.

Read More at Calima Energy (ASX:CE1) Announces Transformative Merger with Blackspur Oil Corp.

The completion of the Blackspur acquisition will provide Calima with a high-grade portfolio of Canadian oil & gas projects – Brooks, Thorsby, Calima Lands, and the Tommy Lakes Facilities. With the acquisition of Blackspur Oil Corp.’s assets, the Company intends to boost exposure to burgeoning oil prices & recurring cash-flow stream.

Furthermore, the merger will bolster the Company’s exposure in Tier One jurisdiction of Canada, which is a recognised energy market having a supportive energy policy. Calima’s strategy is to finalise the merger with Blackspur and foster production from the Thorsby and Brooks assets to more than 5,500 boe/d by the end of 2022.

Calima shares last traded on 15 February 2021 at AUD 0.01. The Company expects being reinstated to trading on 3 May 2021.

Must Read: Meet the company that Calima Energy is merging with





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