Renergen Raises AU $ 10 Million for Development and Exploration of Virginia Gas Project
South African natural gas and helium producer Renergen has managed to raise A $ 10 million through a capital increase to finance the development of its Virginia gas project in the South African Free State.
The placement was underwritten by existing and new national and international institutions and sophisticated investors.
Renergen will use the majority of the funds from the placement to accelerate exploration at its 100% owned Virginia gas project, following exceptional drill results that returned helium grades of up to 12%.
Virginia currently has an average helium concentration of 3.4%.
The company will also use funds to advance feasibility studies for Phase 2 of the Virginia project and replenish working capital, which has been negatively affected by business delays due to lockdowns imposed by Covid-19 over the course of the year. ‘fiscal year 2021.
CEO of Renergen Stefano Marani is pleased that the company “is only scratching the surface of Virginia’s potential and is primarily focused on achieving our Phase 1 and 2 milestones.”
Renergen intends to seize this opportunity to strengthen its balance sheet and accelerate exploration and development activities in Virginia.
“It is important to note that Virginia is shaping up to be a world class project and the funds raised will allow us to effectively advance our busy work schedule over the next six months as we work to [the start] phase 1 production, ”says Marani.
With Renergen’s Evander proving another world-class helium show, the additional 52,000 ha of exploration rights could start to “add an interesting dimension to this activity in the medium term”.