Initially the funds raising was to be through an institutional placement of 18.2 million shares at 20 cents a share - raising $3.63 million; and the Rights Issue with a 1:8 share subscription at 20 cents per share - to raise $10.4 million.
The issue price of new shares at 20 cents per share is a discount of 16.7% to the last share sales at 24 cents prior to Mosaic requesting a trading halt.
Specific projects, estimated at $9.3 million, include the construction of a 25 km Waggamba pipeline and gathering station, three additional Waggamba wells and an exploratory well on the RH Prospect lying to the north west of Waggamba.
Mosaic has signed two gas sales contracts this month:- a five year contract for Mosaic to supply up to 21 PJ to CS Energy's Swanbank power station and a contract for the Churchie gas field partners (Mosaic 49% and Santos 51%) to supply 1 PJ of gas to Santos QNT over the next 6 months.
