Natural gas and helium producer, Renergen Limited, has announced that Ivanhoe Mines Limited has made a significant investment in the company through a placement of 5,6 million shares at just under R35,63 per share, a discount of 5% to the 30-day volume-weighted average price (VWAP), raising an equivalent of R200,6 million.
The placement will give Ivanhoe an initial strategic shareholding in the company and could lead to Ivanhoe becoming a strategic partner and major shareholder in Renergen. The conditional option provides for funding of up to US$250 million (or greater at Ivanhoe’s election) towards up scaling the Virginia Gas Project following the imminent commissioning and commencement of Phase 1 commercial production.
Ivanhoe is a Canadian-listed, African-focused natural resources development company, led by its founder, Robert Friedland. Friedland’s track record in the discovery and development of major natural resource projects includes Platreef, a major development in South Africa.
This strategic investment in Renergen highlights the excellent growth of the company over the last two years and the potential of the Virginia Gas Project to become a globally significant LNG and Helium operation.