Range Resources agrees funding deal with Beijing Sibo Investment Management

Oil and gas explorer Range Resources has signed a conditional funding deal worth up to $35m (£22.7m) with Beijing Sibo Investment Management.

In a statement released on Tuesday, the London-listed group said the memorandum of understanding outlined the terms of a potential share subscription, which remains subject to a number of approvals.

Under the proposal, Sibo would acquire between $20m and $35m worth of Range shares at a price of 0.8p each, which would represent a 48% premium to Range’s last traded price before its shares were suspended from trading in December.

Should the memorandum of understanding become a permanent agreement, Sibo will subscribe for the new shares in two separate tranches, with the first comprising of 550m new shares to raise £4.4m, which would represent around 9.7% of the company’s enlarged share capital.

A second tranche, which will be subject to the approval of existing Range shareholders, would see Sibo own up to approximately 36% of Range’s eventual share capital.

“The board believes that the proposed financing presents an attractive replacement funding, at a premium to the last traded share price, which allows the company to embark on its growth ambitions,” Range said.

Range shares were up 4.67% to 0.560p at 09:26 on Tuesday.