Argos is pleased to announce it has conditionally raised gross proceeds of US$550,000 (approximately £400,000) through the issue of 14,428,001 Subscription Shares at a price equivalent to 2.75 pence each (the "Subscription Price") by certain new shareholders and Ian Thomson, Executive Chairman of the Company (the "Fundraise").
Further to Argos' announcement on 18 September 2020, the Company remains engaged in discussions with counterparties who have expressed an interest in participating in drilling on Licence PL001, a production licence covering an area of approximately 1,126 square kilometres in the North Falkland Basin. In order to enable the Company to progress these discussions with potential farm-in partners, on 10 February 2021 the Board requested that the Falklands Islands Government grant a 12 month extension to the second term of Licence PL001, which is currently due to expire on 1 May 2021. The Falkland Islands Government has said that as part of its consideration of this request, the Company must demonstrate that it has, or will secure, sufficient funds to meet its working capital requirements until at least the period of the extension requested.
The net proceeds of the Fundraise, along with the Company's existing cash of £235,000 at 25 March 2021, will provide working capital for the Group until at least 1 May 2022, being the requested extension date of Licence PL001.
The Fundraise is conditional, among other matters, on the passing of the Resolutions by Shareholders at a General Meeting. A notice convening the General Meeting for 5.00 p.m. (FKST) on 30 April 2021 at Falkland Islands Chamber of Commerce, Stanley, Falkland Islands to consider the Resolutions is expected to be posted on 7 April 2021.
