13 May 2014TANGIERS PETROLEUM LIMITED
Tangiers places $5M of shares for upcoming Moroccan well
Tangiers Petroleum Limited (ASX: TPT; AIM: TPET) ("Tangiers" or the "Company")
is pleased to advise that it resolved to place A$5 million worth of shares,
before costs, through the private placement of 31.25 million shares to
specified wholesale, institutional and sophisticated investors at A$0.16 per
share ("Placement") in Australia, the United Kingdom and Hong Kong.
The Placement will be completed in two tranches consisting of:
• approximately 23.6 million shares issued in the first tranche pursuant to the
Company's remaining 15% capacity under ASX Listing Rule 7.1; and
• a balance of approximately 7.5 million shares issued in the second tranche
subject to shareholder approval at the Annual General Meeting of shareholders
scheduled to be held in early June.
The proceeds of the raising will be applied to the 33% share of any costs in
excess of the US$33m free carry provided by the Tarfaya Farm-Out Agreement for
the drilling of the TAO-1 well, due to be spudded next month and for general
working capital expenditure.
The Company has agreed with Galp Energia Tarfaya B.V. to set up a joint account
which will hold the US$7.5 million past costs due to Tangiers under the
Farm-Out Agreement. These funds will also be used to contribute to any costs in
excess of the US$33m free carry limit.
DJ Carmichael Pty Ltd, Foster Stockbroking Pty Ltd and BBY Limited are acting
as Joint Lead Managers of the Placement.
Application will be made for the new shares to be admitted to trading on both
the ASX and the AIM market.
Tangiers Managing Director David Wall said the placement would ensure the
Company was well-funded as it sought to take full advantage of its strong
"The TAO-1 well is a potential company-making opportunity," Mr Wall said. "This
is reflected in the encouraging support for the placement among new
institutional and sophisticated investors."
ROBERT DALTONJoint Company Secretary
Tangiers Petroleum Limited
Level 2, 5 Ord Street
West Perth WA 6005, Australia
Ph: + 61 8 9485 0990
RFC Ambrian Limited (Nominated Adviser)
Mr Oliver Morse / Ms Trinity McIntyre
+61 8 9480 2500
Mr Ed Portman (Media and Investor Relations - United Kingdom)
+44 20 7920 3150