Frontier locks in $10m to underpin development of WA Bristol Springs Green Hydrogen Project
The way the $10m is spent will be watched closely by shareholders as new ex-ATCO manager at the helm
Source: iStock
Mentioned
KEY POINTS
- Frontier Energy raises $10m via share placement at 42c
- Executive Chair of Frontier, Grant Davey, has put in $1m of his own funds
- Move brings Frontier’s total cash to $13m as Bristol Green Hydrogen picks up the pace
Frontier Energy (ASX:FHE) shares opened 5% higher this morning as the company announced a $10m placement to progress development of its WA-based Bristol Springs Green Hydrogen Project.
Interestingly, Frontier's executive chair Grant Davey has contributed $1 million of his own money to the project.
The placement was completed at 42c (4.5% discount to last closing price), and Frontier notes it won support from institutional and high-net-worth investors.
Upon completion of the placement, Frontier will sit on $13m of cash and expects to be fully funded until 2H 2023 when a final investment decision (FID) for Bristol is made.
What is Frontier funding with the cash?
The funds in question will broadly go towards:
Early works on-site the project acreage
The development of a hydrogen refuelling station
Two key studies needed for the project: Energy Security and System Security
General working capital and corporate overhead
The issuance of some 23m new shares will be broken down into the following two tranches:
Frontier issues 21.4 new shares at 42c for $9m
After to shareholder approval, Frontier issues a further 2.4m shares for $1m
New cash managed by new MD
“We are delighted to announce the completion of the placement, which will enable the company to continue its operational strategy of advancing the Bristol Springs Project,” Frontier MD Sam Lee Mohan said.
Mohan joined the Frontier team only recently and comes from ATCO where he was the former head of Hydrogen strategy for the pipeline and energy player.
“We thank all our existing and new shareholders for their notable support,” Mohan added.
Earlier this month, Frontier began the process of locking in offtake partners for the hydrogen it is set to produce domestically in WA in 2025.
The state of Frontier's three month charts show a building interest in the company
Disclaimer: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. Frontier was a client at the time of publishing. All coverage contains factual information only and should not be interpreted as an opinion or financial advice.
