December 21, 2005
Shareholders in Po Valley Energy have cleared the way for the gas explorer to complete a capital raising package totalling A$8.75 million with a US funds manager.
This follows the go-ahead given at a general meeting of shareholders in Sydneytoday for Tranche 2 of the package — the issue of 2 million ordinary shares at A$0.70per share, to raise A$1.4 million.
ASX-listed Po Valley (“PVE”) will issue the shares to US fund manager, HarbertManagement Corporation, with the proceeds to be used for working capital.
The shareholder approval today is in addition to Tranche 1 in which Po Valley raisedA$7.35 million through the issue of 10.5 million ordinary shares to Harbert, also at anissue price of A$0.70. This transaction did not require shareholder approval.
Proceeds of Tranche 1 are being assigned to accelerating Po Valley’s explorationand development program for its gas projects in northern Italy — where test resultsover several gas zones encountered in the Sillaro-1 deviation well, are expected bythis weekend.
The total placement to Harbert — which has a US$4.7 billion diversified investmentportfolio — gives the US fund a 15% interest in Po Valley’s enlarged share capital of82.5 million shares, ranking it as the second largest shareholder in the Australianexplorer.
Michael Masterman Po Valley Energy 0417 851 303
Kevin Skinner Field Public Relations (08) 8234 9555 / 0414 822 631
Back to the list of news releases.