AIM-listed Buccaneer Energy, the international oil & gas exploration and production company with development and production assets in Texas, USA, has announced a successful fundraise supported by institutional investors, Directors and Management, existing shareholders and new investors in order to further evaluate and progress a bitcoin mining operation as part of its planned Fouke area development programme.
The Company has raised approximately £500,000 (before expenses), c.US$675,000, through a subscription and placing of 2,961,185,383 ordinary shares (the 'Fundraise Shares') at a price of 0.017p per share (the 'Placing Price') (the 'Fundraise').
In addition certain suppliers of the Company have elected to receive shares by way of consideration for services provided for which a further 250,000,000 ordinary shares ('Supplier Shares') will be issued.
Use of Proceeds
The proceeds of the fundraising will be used towards the funding of the Company's (100% WI) share of a Bitcoin Mining operation in the Fouke area. The Company is seeking to partner with a dedicated Bitcoin Mining operator to implement this project. However, if a suitable partner cannot be secured, the proceeds are expected to be used to progress the set up of a Company-owned Bitcoin Mining operation. Additionally, the Company will establish a Bitcoin Treasury function to manage bitcoin that may be earned through future operations.
The Company notes the inherent risk and volatility of digital assets and draws investors' attention to the 'Risks Associated with Digital Assets' section of this announcement.
Gas Monetisation Strategy
As previously announced, the associated gas produced in the Fouke area has been increasing over time and with volumes provided by the two additional development wells the Company has been evaluating several potential local solutions for reducing gas flaring and monetising the produced gas. The most commercially attractive option was determined to be a local Bitcoin Mining operation.
As previously announced, the Company appointed Appold to act as advisor on the implementation of governance, custody, trading, and risk management frameworks as the Company develops either its partner led or its own bitcoin mining operation. The implementation of a successful strategy to monetise this gas is subject to a number of further steps, including the drilling results from the new development wells, and the funding, acquisition and installation of the necessary equipment (as appropriate).
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Source: Buccaneer Energy
