Australian energy company WHL Energy Limited (WHL Energy) has received new funding support providing for a commitment of $4 million from New York-headquartered investment firm Magna Equities II, LLC (Magna).
According to the press release, WHL Energy will have immediate access to $125,000 of those funds which will enable the company to maintain activity at Seychelles and VIC/P67 “La Bella” projects, offshore Australia. An additional $125,000 will be available within thirty days.
The company further said that subsequent funding in tranches of up to $250,000 is available every 60 calendar days to a maximum of $3.75 million.
WHL Energy Managing Director, David Rowbottam, said: “This is a sensible step for the Company and its shareholders and will allow us to continue the ongoing work with the Company’s existing assets and to advance work on new opportunities currently being reviewed.”
“To have the backing of a respected US fund such as Magna at a time when the junior-end of the resources market is struggling to raise fresh equity is a tremendous vote of approval for both WHL Energy and its existing assets.”
According to WHL Energy, the Magna Facility has a 24 month term from the date of each drawdown, is unsecured, bears no interest costs, can be repaid at any time by the company with a 15% premium and can be converted into WHL Energy shares at any time by Magna during the term at a 20% discount to the 5-day volume weighted average price (VWAP) of WHL Energy’s ordinary shares.
Magna Chief Executive, Joshua Sason, said: “Magna is delighted to support WHL Energy and the development of its world class Seychelles and Australian oil and gas assets.”
“This investment marks our continued effort to build lasting and mutually beneficial relationships with exciting companies in the Australian market.”