San Leon secures £19m funding

Dublin-based San Leon Energy has fixed £18.8 million of funding.

Dublin-based San Leon Energy has fixed £18.8 million of funding for projects in Poland, Ireland and Morocco.

The AIM-quoted company has raised £1.6 million in a placing at 14.5p through broker Daniel Stewart, agreed an unsecured 9 per cent loan facility of £2.2 million with New Jersey-based Yorkville Capital Advisors and secured a £15 million three-year equity draw down credit line from YA Global Master, an investment fund managed by Yorkville.

The equity draw down deal allows tightly held San Leon to issue new shares in exchange for funds from YA Global Master at a minimum share price determined by San Leon. The company is to pay Yorkville a £300,000 fee and grant it 400,000 warrants with an exercise price set at 175 per cent of Friday's closing price of 14p.

Oisin Fanning, San Leon's chairman, says the new funding 'allows us to continue to look forward to developing our assets.' San Leon shares, which have traded between 24.5p and 13.5p over the past year, now change hands at 15p, valuing the company at £66 million.