Raising brings New Horizon back in play

Dormant explorer New Horizon Coal has extended its deadline for an $18.8 million capital raising after receiving an underwriting commitment for 70 per cent of the target amount, as it seeks to shift its focus to oil.

New Horizon, which is led by local dealmakers Tony Brennan and Gary Steinepreis, signed up CPS Capital Group last week to underwrite $13 million worth of its entitlement offer, with total commitments now reaching $13.2 million.

New Horizon will issue a maximum 650 million shares at 2 cents each under the offer, the closing date of which has been extended to March 27.

“We are delighted with the success of the fundraising to date,” Mr Brennan said in a statement.

“The company has contracted to buy two excellent oil projects in Texas, US, one conventional (Presidio) and one unconventional (Trinity).

“The first vertical well on the Presidio project is in the final planning stages and is to be drilled in early April.”

New Horizon announced plans to acquire the two Texas oil projects in January, after backing out of plans to develop a coal project in Utah in 2015.

Its shares have been suspended from trading since then. However, New Horizon expects to begin trading again by the end of April.