Lakes Blue Energy raises $8.7M in capital

·       Lakes Blue Energy announced an $8.7 million capital raising initiative consisting of a $4 million placement and a $4.7 million entitlement offer.

·       The entitlement offer opens to eligible shareholders on Aug. 7 to fund ongoing operational activities.

·       Management aims to apply the proceeds to advance the Wombat Project and target near-term cash flow generation.

Lakes Blue Energy (ASX:LKO) announced a capital raising initiative aiming to secure approximately $8.7 million through a share placement and entitlement offer.

The funding package comprises a $4.7 million entitlement offer of fully paid ordinary shares.

The company stated that the raised funds will be directed towards advancing its Wombat Project, specifically targeting near-term cash flow opportunities through perforation, stimulation, and flow testing.

The entitlement offer is scheduled to open Aug. 17 and will close on Aug. 18.

Alongside the financial update, the company reported that Boyd White has resigned from the board upon the completion of the capital raise, with Hugh Walter Robertson appointed as a non-executive director.

Lakes Blue Energy maintains a strategic focus on developing oil and gas exploration assets across Australia to evaluate domestic energy resources.

Following the announcement, the Lakes Blue Energy share price was unchanged at $0.035.