ReconAfrica Successfully Completes C$20.4 Million Funding Round
ReconAfrica Completes C$20.4 Million Underwritten Offering
Reconnaissance Energy Africa Ltd. (the "Company" or "ReconAfrica") (TSXV: RECO) (OTCQX: RECAF) has proudly announced the successful closure of its underwritten public offering. This move has garnered C$20,373,740 in gross proceeds, with each unit priced at C$0.60, which includes financing activities linked to the company’s strategic growth plans.
Details of the Offering
The recent offering was primarily organized by Research Capital Corporation, which acted as the lead underwriter along with a syndicate that included Canaccord Genuity Corp. and Haywood Securities Inc. Each unit comprises one common share and one related purchase warrant. Shareholders will have the opportunity to purchase shares at an exercise price of C$0.72 until September 29, 2027.
Intended Use of Proceeds
The net proceeds from the offering will be dedicated to enhancing appraisal and exploration activities. This includes work under the Ngulu production-sharing contract offshore Gabon, as well as road and equipment maintenance in Namibia, commitments in Angola, and general working capital needs. In Gabon, funds will support geological and geophysical investigations as well as the reprocessing of 3D seismic data.
Leaders’ Remarks on the Offering's Success
Brian Reinsborough, the President and CEO of ReconAfrica, expressed enthusiasm about the offering’s success. He thanked existing shareholders for their unwavering support while also extending a warm welcome to new investors. This funding is crucial for advancing the company’s high-impact drilling initiative focused on the highly anticipated Kavango West 1X well located in Namibia and enhancing business plans in offshore Gabon.
Additional Insights on the Underwriting Process
The offering was made through a prospectus supplement as per the company’s existing base shelf prospectus. The underwriters received a cash commission equal to 6.0% of the total gross proceeds, amounting to approximately C$1,088,428.80. They will also receive warrants based on the units sold, providing further encouragement for their continued support.
Strategic Appointments and Future Developments
In tandem with the funding announcement, ReconAfrica is thrilled to announce the appointment of Mark Friesen as the new Vice President of Investor Relations & Capital Markets effective October 1, 2025. In addition, the company has authorized the issuance of 625,000 incentive stock options to various officers at a price of C$0.60 per common share.
About ReconAfrica
ReconAfrica is an emerging Canadian oil and gas company dedicated to exploring the rich resources within the Damara Fold Belt and Kavango Rift Basin located in the Kalahari region. The company holds petroleum licenses across approximately 13 million contiguous acres. ReconAfrica is focused on undertaking exploration activities while ensuring minimal environmental disturbance and adhering to best international practices.
Frequently Asked Questions
What was the total amount raised in the offering?
The total amount raised through the offering was C$20,373,740.
Who led the underwriting of the offering?
The offering was led by Research Capital Corporation, which was supported by Canaccord Genuity Corp. and Haywood Securities Inc.
What will the proceeds from the offering be used for?
The proceeds will primarily fund exploration and appraisal activities in Namibia, Gabon, and Angola, including geological studies and seismic data reprocessing.
When will the purchase warrants commence trading?
The purchase warrants are expected to start trading on the TSX Venture Exchange on or about October 3, 2025.
Who is the new Vice President of Investor Relations?
Mark Friesen has been appointed as the new Vice President, Investor Relations & Capital Markets, effective October 1, 2025.
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