Australian Geodynamics bags USD 4m in institutional placement

Dec 27, 2011 - Australian geothermal explorer Geodynamics (ASX:GDY) said last week it had raised AUD 3.8 million (USD 4m/EUR 3m) in a share placement to professional, sophisticated and institutional investors in Australia and abroad.

The company sold 25.4 million shares at AUD 0.15 apiece, a discount of 20% on its volume weighted average share price (VWAP) for the five days before the sale.

The offering is part of Geodynamics' plan to raise AUD 8 million via an institutional placement and a share purchase plan. The combined proceeds will go to back the company's Cooper Basin geothermal project in Australia, including the start of drilling at the Habanero 4 well in the first three months of 2012.

Geodynamics said it would now kick off the share purchase plan, seeking proceeds of AUD 4.2 million. It is to offer to every one of its shareholders as much as AUD 15,000 worth of stock. Each share will be priced at a discount of 7.5% to the five-day VWAP at the allotment date, with a minimum offer price of AUD 0.135. Additional details of the share purchase plan will be provided shortly.

If demand is higher, Geodynamics said it would accept shareholder applications until the combined proceeds from the placement and the share purchase plan reach AUD 10 million.

(AUD 1 = USD 1.016/EUR 0.777)

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