CGX Energy to raise $80m in bought deal financing
Oil and gas company CGX Energy (CVE:OYL) reported on Monday that it has struck a deal with a syndicate of underwriters to raise $80 million.
Calgary-based CGX Energy said it plans to issue 114.3 million shares for a price of 70 cents a share in a bought deal financing.
The company said it intends to use the proceeds to fund its capital program in offshore Guyana, and for general corporate purposes.
CGX also granted the underwriters an option to purchase up to an additional 17.14 million shares to cover over-allotments for 70 cents a share, for gross proceeds of $12 million.
The syndicate of underwriters are led by Cormark Securities, Canaccord Genuity, GMP Securities L.P. and Toll Cross Securities, among others.
The financing is expected to close October 12, and is subject to the Toronto Stock Exchange Venture approval and securities regulatory approval.
CGX Energy is focused on exploring oil in the Guyana-Suriname basin. The company's licenses in Guyana cover 9.5 million acres.
Related news
- London Mining remains on track to hit 2012 production target at Marampa
- Ceres Power Holdings reports significant improvements of its fuel cell products
- Oxford Catalysts Group shares advance as it announces first start-up of FT reactor
- Mariana Resources kicks off drilling programme at Las Calandrias gold-silver project
- Orogen Gold begins Phase 1 drilling programme at Deli Jovan
- Magnolia Petroleum on track to hit 100 wells target by end-2012
- Mwana Africa sells 15pct stake in Freda Rebecca gold mine for $405k - UPDATE
