Cluff Natural Resources £1m subscription to invest in new licenses

Cluff Natural Resources went cap in hand to shareholders at the end of the week in order to raise fresh funds to finance bidding for additional licenses in the UK and to pursue potential investment opportunities.

The AIM-quoted natural resources investing company said it would issue 66.67m new shares in two tranches of 41.67m and 25.0m each at 1.5p per share.

Although the second subscription trache was conditional on receipt of approval by shareholders, the company was aiming to raise £1m.

Proceeds from the subscription would be funeled into the application for additional licenses under the UK's 30th Offshore Licencing Round, to help complete a farm out of the Company's two 100% owned gas licences in the Southern North Sea and to pursue further investment opportunities, as well as for general working capital purposes.

The directors also said that net proceeds would suffice to fund the outfit at least until the middle of the second quarter of 2018.

Expectations were for the first tranche of shares which would generate £625,000 of proceeds for the firm to begin trading on AIM on or around 12 October with admission of the second tranche seen on or around 27 October.