Magnum Gas and Power is raising up to US$ 1.5 million through a share purchase plan (SPP) to advance its Botswana and New South Wales coal bed methane (CBM) gas projects.
Under the SPP, eligible shareholders will be able to purchase up to US$ 15 000 worth of additional shares in the company at 1.2 cents without incurring brokerage or other transaction costs. Magnum intends to raise the US$ 1.5 million through the issue of an additional 125 million shares.
Magnum has recently completed a successful exploration programme in Botswana and is currently engaged in testing and analysis work, the results from which will provide the company with data to support prospectivity and basin models, including information on gas properties such as gas content and composition.
Magnum recently announced very positive initial results, which confirmed 95% methane in the gas composition from borehole samples. Final results from the testing and analysis will be completed and released over the coming months.
The next phase of exploration drilling is now being planned with a number of prospective target areas identified. Several other major CBM exploration programmes are underway in the basin, including projects by Kubu Energy, Exxaro and Tlou Energy.
New South Wales
Magnum retains a significant interest in a number of licence areas in New South Wales, Australia. While these projects have been on hold for some time due to state and federal politics, Magnum believes in the project fundamentals (the acreage has existing reserves, is near existing infrastructure and sits in a region with a looming energy crisis) and is waiting for a defined development from the government to enable planned operations to be approved and recommence.
Adapted from press release by Katie Woodward
Read the article online at: https://www.worldcoal.com/coal/23102013/magnum_to_raise_money_for_cbm_projects_173/