Calima Energy completes strongly supported A$38 million capital raising

Calima Energy Ltd (ASX:CE1) has completed a strongly supported capital raising under its retail offer and institutional placement for total funds of A$37.9 million. There were 5,425,783,115 fully paid ordinary shares issued at a price of A$0.007 per share. The company received strong demand in the retail offer and scale backs have been applied with the scale-back funds to be remitted back to the investors on Friday, April 30, 2021. Shares under the capital raising were issued in a single tranche following shareholder approval on April 15, 2021, and accordingly do not count towards the company’s LR 7.1. placement capacity. ASX reinstatement The company is making progress on the path to production and revenue generation from assets in the prolific Montney Formation in Canada and is confident of ending an ASX trading suspension in the near future. Calima anticipates being reinstated to trading on May 3, 2021, with this process boosted by progress with the recent Blackspur Oil Corp acquisition which will create a stronger merged entity. Funding acquisition costs The funds raised under the capital raising will be used for: Cash component of the acquisition of Blackspur Oil Corp; Paydown debt of Blackspur as detailed in the notice of meeting dated March 11, 2021;  Pay for the costs of the acquisition of Blackspur Oil Corp; and  For working capital purposes.  Blackspur transaction progresses The acquisition arrangement has progressed with Blackspur receiving Canadian Court Approval in respect of the binding agreement with Calima. Blackspur owns producing oil and natural gas assets in two core areas within Alberta, at Brooks and Thorsby. Calima has also been buoyed by news that National Bank of Canada has approved a C$25 million revolving credit facility for Blackspur Oil Corp. Together with revenue generated from operations, this will provide the additional short-term working capital to fund the capital works program for 2021 and 2022.