International Frontier Resources closes financing for C$5.1 million
Calgary-based International Frontier Resources (TSX: IFR, OTCQB: IFRTF) announced today that the company closed it previously announced private placement for gross proceeds of C$5.1 million effective March 3, 2017, which consisted of the sale of 18,068,160 common shares at a price of C$0.28 per common share.
The brokered portion of the private placement consisted of 8.1 million shares for gross proceeds of C$2.3 million, while the non-brokered piece of the deal consisted of 10.0 million shares for gross proceeds of C$2.8 million, according to International Frontier Resources.
“We have received significant interest from institutional and high net worth investors as well as strong support from our shareholders,” said IFR’s President and CEO Steve Hanson. “IFR is now fully funded to meet its 2017 work commitments at Tecolutla. We look forward to advancing the development on the block and putting Tecolutla into production with workovers and new wells planned to be drilled this year.”
The proceeds from the financing will be used to fund the company’s minimum work program under its previously announced license contract for the Tecolutla Block in Mexico and to earn into the block. Funds will also be used to participate in the 2.3 bid round auction and for general working capital.
IFR prepares for Round 2.3 of Mexico’s oil and gas leases
IFR announced January 19, 2017, that its jointly owned Mexican company Tonalli Energia had registered and been granted access to the National Hydrocarbons Commission (CNH) data room for the third tender of Round Two of Mexico’s oil and gas energy reform. Tonalli is in the process of analyzing and assessing block data, and completing documentation in anticipation of entering the bidding process this spring.
Concessions are to be awarded in July 2017 under a license contract model. The licenses for exploration and production will last 30 years and can be extended for a maximum of two additional terms of five years each.
International Frontier Resources continues to move forward with the Mexican energy reform
IFR was one of the first foreign companies to participate in the Mexico’s energy reform, officially taking over operatorship of Tecolutla from state-owned Pemex in November of last year. Tonalli plans to drill its first well in the first half of 2017, according to the company.
“After review of the reprocessed 3D seismic, we have identified areas of the reservoir which we believe, are significantly higher and thicker than previously reported and which have not been penetrated by existing wells,” IFR said in a statement after reviewing seismic data from Tecolutla.
