WestSide Corporation has boosted its cash reserves to $28 million in a bid to expand the gas reserves at its Bowen Basin coal seam gas tenements.
The miner undertook a placement of shares raising $5 million, guaranteeing the full $18 million of funds are raised as a result of expiring share options.
The company’s 50% share in its current 2009 exploration and appraisal program is being met from existing cash reserves.
Chairman Angus Karoll said 10 million shares were placed through ABN AMRO Morgans Corporate and
Patersons Securities at $0.50 each, being the same price which exercising option holders paid.
“The response from option holders has been strong. This additional stock has been allocated to satisfy demand from underwriters, who faced a substantial scale-back of their applications,” Karoll said.
“This additional capital will enable WestSide to plan ahead with confidence to achieve its goals of delivering certified reserves, generating income and pursuing fresh opportunities.”
According to Karoll, shares issued through the exercise of options, underwriting of options and the final share placement will be allotted by 9 April 2009.