Kelt Exploration Ltd. (TO: KEL.TO) upsized a brokered equity financing, the company said March 5. Total proceeds, depending on underwriters’ actions, could range between CA$122.7 million-CA$132.9 million.
The revised agreement has a syndicate of underwriters led by Peters & Co. Ltd., and the underwriters will purchase, for resale to the public, 8.5 million common shares, the company said.
Purchases will be on a bought deal private placement basis, and shares are priced at CA$11.60 each, Kelt added.
The original gross proceeds will total CA$98.6 million, the company said, adding that the underwriters will also sell to the public 1.53 million common shares, upsized from 730 million on a flow-through basis at $12.75 each.
This could result in additional gross proceeds of CA$19.5 million, upsized from CA$9.3 million, Kelt noted.
The underwriters were granted a monthlong option to purchase an additional 1.275 million shares at CA$11.60, the company said, noting that if exercised this would increase common share gross proceeds by CA$14.8 million.
The offer is scheduled to close March 25, the company said.
A separate nonbrokered private placement of an additional 1.105 million common shares at CA$12.75 each, for proceeds of $14.1 million, was offered to directors, officers and employees, Kelt said.
Net proceeds from the all the offerings will partly fund 2014 capex programs and working capital, the company said.
Calgary-based Kelt Exploration Ltd. explores, develops and produces crude oil and natural gas in west-central Alberta and northeastern British Columbia.
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