Providence aims for €10m through share issue placing

Exploration company Providence Resources has said it aims to raise just over €10m through the issue of 338 million new shares in a share placing.

The shares will be sold at 3c each to mainly Irish and UK institutional subscribers, as well as Tony O'Reilly, who is taking up €1m worth of new shares.

The proceeds will be used to fund Providence's share of the drilling of a test well at the Blackrock

Prospect.

Providence intends to offer shareholders the chance to acquire new shares through a €3.2m rights issue of one unit - comprising four ordinary shares and one warrant - for every 57 held.

After completion, Dr O'Reilly, who intends to take up his full entitlement, will own 45% of the company.

Shares in Providence on the ISEQ were steady at 5c a share at 4.30pm today.

The exploration company also announced earlier today that it and partner Midmar Energy signed a farm-in agreement with the Challenger Minerals and Palace Exploration Co joint venture (CMI venture) concerning a license option offshore Ireland on the Blackrock prospect.