About New Horizon
New Horizon Coal Ltd is an ASX listed company.
On 5 January 2017, the Company entered into two agreements, one to acquire the Trinity Oil Project and the second to acquire the Presidio Oil Project (together, the Projects). Both Projects are located in Texas, USA.
The total combined purchase price to be paid by the Company for the Projects is US$1,450,000 cash plus 240,000,000 Shares along with 240,000,000 Performance Rights. The purchase of the Projects by the Company is subject to and conditional upon the successful completion of the Entitlement Offer.
At the General Meeting held on 6 February 2017, the Company received the requisite Shareholder approvals to purchase the Projects and undertake the Entitlement Offer.
Under the Entitlement Offer, Shareholders will be entitled to apply for eight (8) Shares for every one (1) Share held on the Record Date of 22 February 2017 at an issue price of $0.02 per Share, to raise up to $18,880,000 (before costs), subject to the Minimum Subscription of $12,000,000 being raised.
Assuming completion of the Entitlement Offer and settlement of the Acquisitions, the Company proposes to immediately commence drilling on the Presidio Oil Project, with the intention of completing three conventional vertical wells on the Presidio Oil Project by 31 December 2017. Simultaneously, the Company, by itself or with a farminee joint venturer, intends to drill a vertical fracked well by 31 December 2017 through the “Eaglebine/BudaRose” section on the Trinity Oil Project.