Po Valley Energy to raise $10.1m for Selva Malvezzi

PO Valley is looking to raise up to $10.1m to fund development of its Selva Malvezzi onshore gas project in Italy. The company is looking to raise the funds through a placement of 35.7 million shares priced at 2.8c per share to raise about $1m and a fully-underwritten 1 for 2 pro-rata accelerated non-renounceable entitlement offer at the same price to raise the remaining $9.1m. The entitlement offer comprises a $7.1m institutional component and a $2m offer to retail shareholders. Selva Malvezzi has proved and probable reserves of 44.9 billion cubic feet of gas net to Po Valley. Development costs are expected to be about €2.3 million ($3.6m) of which the company is responsible for €1.5m from its 63% stake in the project. The project is expected to deliver earnings before interest, taxes, depreciation, and amortisation of €4.7m net to Po Valley per annum.