News

December 01, 2009

Ascent To Raise £6 Million As It Chases Production Growth in 2010

Allaying investor concerns that the company was too cash-strapped to develop its portfolio of 20 properties that span five countries across Europe, Ascent Resources has conditionally raised £6 million through a placing with new and existing shareholders. The placing was handled by its new broker and Nomad, Astaire Securities plc, and involves 120,000,000 new ordinary shares priced at 5 pence each, a slight discount on the current share price of 5.5 pence each.

The placing will be in two tranches: the first raising gross proceeds of £1.79 million and the second, subject to shareholder approval at an EGM on December 14, will raise £4.2 million.  The placing shares will represent about 24 per cent of the enlarged share capital.

The AIM-quoted company plans to use the funds to develop those projects capable of delivering near-term cash flows: rank exploration has dropped off the agenda for next year.  This means the 2010 development plan will...