The Board of Island reports the completion of a placing to raise £762,417, before expenses (“the Placing”). The Board also has agreed terms with Longreach Oil and Gas Ventures Limited (Longreach) and Celtex Exploration Services Limited (Celtex) (together “the Lenders”) for the provision of funds (together “the Loans”) to cover certain bank guarantees given to the government of the Kingdom of Morocco to secure Island’s position in the Sidi Moussa and Foum Draa Exploration Licenses (the “Licences”), which have recently been awarded to Island International Exploration B.V. (IIEBV). In addition, Mr. Benitz, Chairman of the Company, has agreed to provide a further loan of £300,000 to the Company.

The Placing of 15,248,350 new ordinary shares of €0.01 each (“Placing Shares”) at a price of £0.05 per ordinary share (“Placing Price”) has raised £762,417, before expenses. The principal purpose of the Placing is to provide working capital to the Company. Alexander David Securities Limited acted as broker to the Placing.

Mr. Benitz, Chairman of the Company, has subscribed for 4,000,000 shares in the Placing. Following the Placing, Mr Benitz’s interests in the share capital of the Company will total 4,401,350 ordinary shares or 3.2 per cent. of the issued share capital of the Company.

Tags: Island Oil & Gas