Bowen Energy is set to undertake a 2.5 for 1 pro rata renounceable entitlement offer to raise USD 6.74 million before offer costs to fund the company activities for the next 12 months.

Money raised will go towards further exploration across Bowen Energy’s coal exploration permits and exploration leases for base metals, uranium and precious metals. The capital raising should ensure Bowen Energy has sufficient working capital to meet forecast expenditure over the next year.

Bowen’s major shareholder Bhushan Steel has indicated its intent to take up its entitlement under the entitlement offer.

Entitlement offer

The renounceable entitlement offers 2.5 new shares for every one existing Bowen Energy ordinary share held at November 11 2011 for USD 0.033 per share. BurnVoir Corporate Finance has been appointed Lead Manager to the capital raising.

Eligible shareholders will be alloted an entitlement which can be traded on the Australian Securities Exchange from November 7 until November 23 2011. Shareholders who do not wish to take up all or part of their entitlement can seek to sell it on the ASX to realise value for the entitlement.

The closing date of the offer is November 30, 2011.

A prospectus will be lodged with ASIC by the end of the month. If the entitlement offer is fully subscribed, the number of ordinary shares issued by Bowen Energy will increase from 81.69 million shares to 285.93 million shares.

(Sourced from www.proactiveinvestors.com.au