Specifically, the proceeds will support the company as it progresses an agreed deal for a ‘multi-TCF’ onshore natural gas project in Texas.
“We are very pleased to have completed this important placing at a premium to the current share price and secured additional financing from our largest shareholder following several months where our focus lay largely on cost reductions and corporate streamlining,” said Scott Kaintz, Curzon chief executive.
It is selling 6mln new shares through the Optiva Securities organized placing which was priced at 1.58p, representing a 21.5% premium to Thursday’s closing price.
Kaintz added: “Support from both existing shareholders and directors in the placing demonstrates the backing behind our initiative on an attractive multi-TCF onshore natural gas project in Texas with Pared Energy.
“We remain focussed on obtaining a meaningful interest in the Texas gas project as a priority, and also in progressing a farm-out or other external funding and development opportunities in relation to our heritage asset at Coos Bay.
“This fundraising and the proposed HOT marks the beginning of the next phase of Curzon's development and we look forward to updating the market on its progression in due course."
Curzon noted that it retains access to a loan note of up to $1,000,000 provided by YA Global Investments, and, to date, US$100,000 has been drawn.