Prominence Energy Gains Strategic Investment from Hartshead Resources
HARTSHEAD RESOURCES NL (HHR) Share Update September 2024 Friday 6th
Prominence Energy Welcomes Strategic Investor Hartshead Resources
Prominence Energy Ltd (ASX: PRM) has announced a strategic investment from Hartshead Resources Ltd, marking a significant development for the company.
Instant Summary:
- Hartshead Resources Ltd to acquire a 19.99% stake in Prominence Energy.
- Investment amounting to $389,000 before costs.
- Bevan Tarratt, Executive Chairman of HHR, joins PRM as Executive Director.
- Alex Parks to retire as Managing Director by the Annual General Meeting.
- Quinton Meyers joins PRM Board as Non-Executive Director.
Investment Details
Prominence Energy Ltd (ASX: PRM) has secured a strategic investment from Hartshead Resources Ltd (HHR), who will acquire a 19.99% stake in the company. This investment, amounting to $389,000 before costs, is expected to significantly bolster Prominence's financial and technical capabilities.
HHR has a strong track record in the UK Southern Gas Basin and has attracted a major independent UK oil and gas company as a joint venture partner. With HHR's technical and financial resources, Prominence Energy is well-positioned to execute value-accretive deals that will benefit all shareholders.
Board Changes
In conjunction with this investment, there are notable changes to the Prominence Energy board. Bevan Tarratt, the Executive Chairman of HHR, has been appointed as Executive Director of PRM, effective immediately, with an annual remuneration of $60,000 inclusive of superannuation. Additionally, Quinton Meyers has joined the board as a Non-Executive Director.
Alex Parks, the current Managing Director, has announced his retirement, which will take effect on or before the Annual General Meeting. The board expressed their gratitude for his hard work and commitment to the company.
Placement Details
The investment by HHR involves the placement of 77,800,000 shares at $0.005 per share, raising a total of $389,000 before costs. Each share includes a 1-for-2 free-attaching unlisted option exercisable at $0.01, expiring three years from the date of issue. The shares will be issued under the company's existing ASX Listing rules, with the options subject to shareholder approval.
GTT Ventures will be paid a placement fee of 6% and a management fee of 1%. Additionally, subject to shareholder approval, GTT Ventures will be issued 30 million options on the same terms as the placement options. The primary use of the proceeds will be to fund Prominence Energy's exploration and development activities, including general working capital purposes.
This strategic investment is likely to have a positive impact on Prominence Energy's stock. The financial and technical support from HHR will enhance Prominence's ability to pursue high ROI opportunities, potentially leading to increased shareholder value. The addition of experienced board members like Bevan Tarratt and Quinton Meyers is expected to strengthen the company's governance and strategic direction.
Investor Reaction:
Analysts are likely to view this investment positively, given HHR's successful track record and the potential for enhanced value creation for Prominence Energy. The changes in the board, particularly the addition of experienced members, are expected to boost investor confidence.
Conclusion:
This strategic investment marks a new phase for Prominence Energy, with significant potential for growth and value creation. Investors should monitor the company's developments closely and consider the long-term benefits of this partnership with Hartshead Resources.