24 September 2012
TANGIERS PETROLEUM LIMITED
Tangiers to Raise up to $5.8m to Launch
Company to turn its attention to African farm-in and acquisition opportunities
under new Executive Chairman Eve Howell
Tangiers Petroleum Limited (ASX:TPT, AIM:TPET, "Tangiers" or "the Company") is
pleased to advise that further to its announcement on 21 September 2012, it has
resolved to increase the size of its proposed capital raising to up to $5.8
million through a share placement ("Placement") and share purchase plan
The funds will be raised through an upsized $5 million Placement of
approximately 18.2 million shares at an issue price of A$0.28 (GBP £0.18) per
share to sophisticated and institutional investors and through a SPP capped at
$800,000 to existing shareholders at A$0.28 (GBP £0.18) per share.
As previously advised, the Placement will be completed in two tranches with
approximately 8.2 million shares issued in the first tranche pursuant to the
company's remaining 15% capacity under ASX Rule 7.1 and the balance of 10
million shares issued in the second tranche subject to shareholder approval at
a General Meeting of shareholders scheduled to be held in late October.
Approximately 2.8 million shares also priced at A$0.28 (GBP £0.18) per
share will also be offered under the SPP with an anticipated record date of
21st of September 2012 and the right for shareholders to subscribe for shares
up to a value of $15,000. It is anticipated that any shortfall in the SPP (if
any) will be placed with sophisticated and experienced investors. SPP
documentation will be sent to eligible shareholders shortly.
DJ Carmichael acted as Lead Manager to the Australian Placement and SPP.
The proceeds of the raising will be used to help underpin the growth strategy
being devised for Tangiers by the new board consisting of Eve Howell, the
Company's new Executive Chairman, Brent Villemarette, ongoing Executive
Director, and Max de Vietri, who has joined the Tangiers Board as a
Ms Howell is a highly experienced petroleum executive who enjoyed a
distinguished career with Woodside, where she was Executive Vice President of
the North West Shelf project and Chief Executive of the North West Shelf
Venture. Prior to joining Woodside in 2006, Ms Howell was a senior executive
with Apache, holding the positions of Regional Vice President at Apache
Corporation and Managing Director of the Australian subsidiary Apache Energy.
Mr de Vietri is a successful geologist who has played a leading role in major
petroleum and mineral projects around the world. In particular, he is widely
regarded as the person who uncovered Mauritania's and Mali's petroleum
potential. He founded and ran the ASX-listed Baraka Petroleum, vending in an
extensive package of African tenements.
Under Ms Howell's leadership, the Board has signalled its intention to set
Tangiers on course for aggressive growth as part of the plan to develop the
Company into a substantial African petroleum group.
The proceeds of the raising will help enable Tangiers to assess growth
opportunities in Africa, including potential farm-in deals and acquisitions.
"This raising will enable us to hit the ground running," Ms Howell said. "We
see the support shown for this capital raising and the investment by new
institutional and existing shareholders as a strong endorsement of the strategy
the new Board has undertaken and positions us strongly to fulfil our growth
objectives. There are significant opportunities in Africa for Tangiers to
acquire interests in exploration and development projects.
"As part of our strategy, we are looking for deals which have the potential to
generate substantial returns for shareholders."
Joint Company Secretary
Tangiers Petroleum Limited
Level 6, 5 Mill Street
Perth WA 6000, Australia
Ph: +61 8 9485 0990
RFC Ambrian Limited (Nominated Adviser)
Mr Stuart Laing
+ 61 8 9480 2506
Old Park Lane Capital PLC (Joint AIM Broker)
Mr Michael Parnes
Mr Luca Tenuta
+ 44 20 7493 8188
Shore Capital Stockbrokers Ltd (Joint AIM Broker)
Mr Jerry Keen
Mr Bidhi Bhoma
+ 44 20 7408 4090
Mr Ed Portman (Media and Investor Relations - United Kingdom)
+ 44 20 7920 3150
-0- Sep/24/2012 06:00 GMT
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