Business
ReconAfrica Announces C$10 Million Overnight Marketed Offering, Led by over C$4 Million in Lead Orders, Including Strategic Investment from BW Energy, to Drill Prospect I in Namibia with Rig Mobilization in June 2025
The Base Shelf Prospectus is accessible, and the Prospectus Supplement will be accessible within ...
About this update from Reconnaissance Energy Africa Ltd.
[{"type":"text","content":"ReconAfrica Announces C$10 Million Overnight Marketed Offering, Led by over C$4 Million in Lead Orders, Including Strategic Investment from BW Energy, to Drill Prospect I in Namibia with Rig Mobilization in June 2025The Base Shelf Prospectus is accessible, and the Prospectus Supplement will be accessible within two business days, through SEDAR+Calgary, Alberta--(Newsfile Corp. - June 4, 2025) - Reconnaissance Energy Africa Ltd. (TSXV: RECO) (OTCQX: RECAF) (FSE: 0XD) (NSX: REC) (the \"Company\" or \"ReconAfrica\") announces that it has entered into an agreement with Research Capital Corporation as the lead underwriter and sole bookrunner, on behalf of a syndicate of underwriters, including Canaccord Genuity Corp. and Haywood Securities Inc. (collectively, the \"Underwriters\"), for an overnight marketed public offering of units of the Company (the \"Units\") at a price of C$0.50‎ per Unit for aggregate gross proceeds to the Company of C$10,000,000 (the \"Offering\").In connection with the Offering, indications of lead orders have been received from BW Energy Limited (\"BW Energy\"), directors and management members of ReconAfrica, and certain other investors, expecting to purchase over C$4,000,000 of Units. BW Energy has agreed to a follow-on strategic equity investment in the Company of approximately C$2,000,000 under the Offering, reaffirming it's previously announced strategic partnership with ReconAfrica. BW Energy's additional investment represents approximately 20% of the Offering, increasing BW Energy's share ownership position in ReconAfrica from approximately 6.5% prior to the Offering to approximately 7.6% after the Offering. The Units purchased by BW Energy under the Offering will be subject to a six-month lock-up agreement.Each Unit will be comprised of one common share of the Company (\"Common Share\") and one Common Share purchase warrant of the Company (\"Warrant\"). Each Warrant will entitle the holder thereof to purchase one Common Share at an exercise price of C$0.60‎ at any time up to 24 months from closing of the Offering. In addition, the Company will use commercial reasonable efforts to obtain the necessary approvals to list the Warrants on the TSX Venture Exchange (the \"Exchange\"). The net proceeds from the Offering will be used for exploration activities, working capital and gener...