Frontier Energy Limited has raised $10 million at an issue price of $0.42 per new share for the Bristol Springs Green Hydrogen Project.
Executive Chair Grant Davey subscribed for $1 million of the placement. The company has $13 million in cash, which sees the company fully funded through to FID, which is expected to occur during 2H 2023.
Funds from the Placement will be used to advance the Project, in particular:
- Early works at the Project site
- Hydrogen refuelling station development
- Energy Storage and System Security (Hydrogen Peaking Plant) studies
- General working capital and corporate costs.
New shares under the placement will be issued in two tranches:
- Tranche 1: the company will issue approximately 21.4 million new shares at an offer price of A$0.42 per new share to raise gross proceeds of A$9 million.
- Tranche 2: subject to shareholder approval, the company will issue approximately 2.4 million new shares to Executive Chair Grant Davey at an offer price of A$0.42 per new share, raising gross proceeds of $1 million.
New shares will rank equally with the company’s existing fully paid ordinary shares on issue.
Sam Lee Mohan, MD of Frontier Energy, said, “We are delighted to announce the completion of the Placement, which will enable the Company to continue its operational strategy of advancing the Bristol Springs Project.”