Renergen Progresses Funding for Phase 2 Helium/LNG Development with Initial Placement and Complementary Strategic Pa
RENERGEN LIMITED
Incorporated in the Republic of South Africa
(Registration number: 2014/195093/06)
JSE Share code: REN
A2X Share code: REN
ISIN: ZAE000202610
LEI: 378900B1512179F35A69
Australian Business Number (ABN): 93 998 352 675
ASX Share code: RLT
(“Renergen” or “the Company”)
RENERGEN PROGRESSES FUNDING FOR PHASE 2 HELIUM/LNG DEVELOPMENT WITH INITIAL PLACEMENT AND COMPLIMENTARY STRATEGIC PARTNERSHIP WITH IVANHOE MINES
- Ivanhoe Mines Limited becomes 4.35% shareholder in Renergen through initial placement of 5,631,787 shares at R35.625 per share (equivalent to US$2.37, AUD3.24) equal to a 5% discount to 30-day VWAP
- Strategic investment agreement establishes a pathway for Ivanhoe to increase its shareholding in Renergen up to a 25% shareholding through a market-related (10% discount to 30-day VWAP) Second Subscription, following completion of 120-day due diligence period (commencing immediately)
- Following completion of the Second Subscription, Ivanhoe thereafter has the option to increase its shareholding in Renergen up to 55%, by electing to provide equity funding of up to US$250,000,000 at a market related price (10% discount to 30-day VWAP) for further development and up-scaling of the Virginia Gas Project
- Strategic investment by Ivanhoe comes at a time where the current global LNG and helium markets are in shortfall
- Investment by Ivanhoe highlights the excellent growth of Renergen and significant and exciting opportunity for the Virginia Gas Project to become a globally significant LNG and helium producer
- Transaction paves the way for Renergen to access significant capital towards Phase 2 development, diversifies its investor base into North America, and minimizes potential dilution to existing shareholders as further investments from Ivanhoe linked to prevailing share price at the time of subsequent investments
Natural gas and helium producer, Renergen Limited, is pleased to announce a significant investment in the Company by Ivanhoe Mines Limited (“Ivanhoe”) through a placement of 5,631,787 shares at R35.625 per share, a discount of 5% to the 30 day VWAP, raising an equivalent of ZAR200.6 million (equivalent to US$13.3, AUD18.3 million). The placement is within the Company’s existing pre-approved placement capacity, but importantly Ivanhoe will acquire
an initial strategic shareholding in the Company and, subject to its evaluation of the Company and scalability of operations, may thereafter become a strategic partner and major shareholder in Renergen. The conditional option provides for funding of up to US$250 million (or greater at Ivanhoe’s election) towards up-scaling of the Virginia Gas Project (“Virginia Gas Project”) following the imminent commissioning and commencement of Phase 1 commercial production.
Ivanhoe is a Canadian-listed, African-focused natural resources development company, led by its founder, Executive Co-Chairman, Mr Robert Friedland. Mr Friedland has an unparalleled track record in the discovery and development of major natural resource projects around the globe, including the current major development in South Africa at Platreef.
The strategic investment in Renergen highlights the excellent growth of the Company over the last two years and the potential of the Virginia Gas Project to become a globally significant LNG and Helium operation.
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