Sunbird to Gain AU$25 Million to Develop Ibhubesi Gas Project

Sunbird Energy Ltd. (ASX:SNY) announced that binding agreements have been executed regarding a transaction that will see Vandasia Investments Ltd. acquire a 43.9-percent interest in Sunbird. Ultimately, the transaction will bring Sunbird over AU$25 million and leave the company with “a major strategic partner” to help develop its Ibhubesi gas project.

As quoted in the press release:

[The acquisition will involve] a two stage transaction involving two capital raisings at the equivalent weighted average price of approximately AUD$0.34 per share and the acquisition and conversion of 47.75m existing AUD$0.20 options. Overall, the transaction is priced at a premium of 79% to Sunbird’s last traded share price.

The first stage of the investment, being the issue of 20,367,127 fully paid shares for an aggregate subscription amount of USD$5,000,000, is due for completion in 10 business days and represents a premium of 39.5% to the Company’s last traded share price. The second stage of the investment (which is subject to shareholder approval and execution of a Gas Sales Term Sheet with a potential customer) includes the issue of an additional 23,021,757 shares to Vandasia for an aggregate subscription amount of approximately USD$9,350,000, and the purchase and conversion 47.75m options, which will result in the Company receiving approximately an additional US$8,850,000 (subject to exchange rates).

Click here to read the full Sunbird Energy Ltd. (ASX:SNY) press release.