News Release Bengal Energy Ltd (C-BNG) - News Release
Bengal Energy arranges $4.2-million private placement
2022-03-01 20:07 ET - News Release
Shares issued 432,986,394
BNG Close 2022-02-28 C$ 0.08
Mr. Chayan Chakrabarty reports
BENGAL ANNOUNCES COMMON SHARE NON-BROKERED PRIVATE PLACEMENT AT $0.08/COMMON SHARE
Bengal Energy Ltd. has entered into definitive agreements with respect to a non-brokered private placement of approximately 52.3 million common shares of the company at a price of eight cents per common share for aggregate gross proceeds of approximately $4.2-million. All amounts are in Canadian dollars.
The private placement is expected to close on or about March 3, 2022. Closing of the private placement is subject to customary closing conditions, including, but not limited to, receipt of all necessary approvals, including approval by the Toronto Stock Exchange. All securities issued pursuant to the private placement will be subject to a four-month-and-a-day hold period under securities laws, in addition to any other hold period or restrictions required by applicable securities laws.
Texada Capital Management Ltd., a company owned and controlled by Bill Wheeler, a director of the company, and his spouse, is a subscriber under the private placement and has agreed to purchase 41,067,871 common shares. It is anticipated that, following closing, Mr. Wheeler (together with Texada and his spouse) would own, directly or indirectly, 398,679,360 common shares, being 82.2 per cent of the issued and outstanding common shares.
The net proceeds from the private placement, along with Bengal's internally generated cash flow, are expected to be used to finance Bengal's 100-per-cent-owned and operated development program over two distinct blocks in Australia's onshore Cooper/Eromanga basin, which is scheduled to commence later in March, 2022. This exploration and development program is expected to include:
- Up to $2.8-million for the restart of shut-in producer wells and recommissioning of pipeline infrastructure at the company's 100-per-cent Wareena block; and
- Up to $2.2-million to stimulate the Caracal-1 well and to establish storage and load-out infrastructure at the company's 100-per-cent-owned and -operated ATP Tookoonooka block.
-