Providence raises €18m to fund new ventures

Providence Resources plc today confirmed to shareholders at an EGM that the company expects to raise up to €18m to extend and develop its natural resources portfolio.

The money will be used in part to fund an exciting drilling programme at the Blackrock Prospect and also to implement the company’s strategy to conduct further appraisal work on Providence’s other licence interests in the Celtic Sea and in the UK.

Providence confirmed to shareholders at the EGM that it expects to undertake a site survey on the Blackrock Prospect in May prior to the arrival of the drilling rig on site in July.

The company announced that, following shareholders' approval of the resolution proposed and considered at the EGM, it will have successfully raised €10.15m by way of the issue of new equity, with a further €3.2m to be raised through an underwritten rights issue. Warrants issued and to be issued have the potential to raise a further €5m.

Chairman Dr Brian Hillery said: "The successful approval of the subscription and the completion of the rights issue will mark a very significant event for Providence.

"The funds raised will allow the company to fulfil its obligations under the drilling and testing programme for the Blackrock Prospect. The company will continue to undertake work to realise the potential of its expanding Celtic Sea and UK interests.

"Last month, we announced details of our new Blackrock Celtic Sea farm-in deal, where Providence, together with our partners Midmar Energy Limited, have entered into a heads of agreement with two international large scale partners, Challenger Minerals Inc and Palace Exploration Company, to complete a drilling and testing programme on our Blackrock Prospect in the Celtic Sea."