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Geodynamics raises $10.3 million in share purchase plan for drilling of Habanero 4

Geodynamics raises $10.3 million in share purchase plan for drilling of Habanero 4 Steam flow at Habanero 3 March 2008 (source: Geodynamics)
Alexander Richter 24 Jan 2012

In a successful closing of its Share Purchase Plan, Australian Geodynamics raises US$10.3 million with proceeds to be used for progressing its Cooper Basin geothermal project, drilling Habanero 4 which is planned for spudding in February 2012.

Geodynamics Limited (ASX: GDY) today announced it successfully closed the Company’s Share Purchase Plan (SPP) on Friday 20 January 2012, oversubscribed. The amount raised exceeds the Company’s combined capital raising target of $8 million following a $3.8 million placement to institutional investors in December 2011. As announced on 21 December 2011, Geodynamics offered eligible shareholders with a registered address in Australia or New Zealand the opportunity to subscribe for up to $15,000 worth of new shares in the Company at the lower of the placement price ($0.15 per share) or a 7.5% discount to the average closing price of shares on the ASX over the five trading days immediately before the Allotment Date on 30 January 2012, subject to a minimum offer price of $0.135.

Following a strong uptake of the SPP, the Geodynamics Board has authorised acceptance of applications up to the maximum amount of $6.2 million, raising a total of $10 million through the SPP and institutional placement. Together with the recent placement, funds raised from the SPP will be used to progress the Company’s Cooper Basin Geothermal Project, commencing with drilling Habanero 4 planned for spudding in February 2012.

The SPP and institutional placement were conducted by joint lead managers RBS Morgans and Austock. Geodynamics’ Managing Director and Chief Executive Officer Geoff Ward said, “The
ongoing support from Geodynamics’ shareholders is very much appreciated. As we wish to accommodate shareholders to the greatest extent possible, the Geodynamics Board has decided to accept applications up to the maximum amount under the plan.”

“Geodynamics remains in a strong position to continue the development of the Habanero Deeps Enhanced Geothermal Systems (EGS) project and we look forward to a year of significant field activity, commencing with the drilling of Habanero 4.” Allotment of shares under the SPP will occur on 30 January 2012. Applicants will be advised of the issue price of shares under the SPP following the 5 day VWAP (Volume Weighted Average Price) period and of their final allocations with holding statements expected to be dispatched on 2 February 2012.

Source: Company release (pdf)