Lakes Blue Energy Secures $6.5 Million to Fund Drilling Operations

Highlights:

• $6.5 Million Raised: Lakes Blue Energy NL (ASX: LKO) secured $6.5 million through a two-tranche placement to fully fund drilling at its Wombat 5 appraisal well in PRL 2.
• Cash Runway Extended: The placement provides working capital through to 30 June 2026, bringing the company’s pro forma cash balance to approximately $9.4 million at the time of writing.
• Discounted Share Price: Shares are issued at $0.75 each — a 25% discount to the last traded price of $1.00 before trading suspension — with director participation and shareholder approval involved in the second tranche.

Strategic Funding to Advance Key Exploration

Lakes Blue Energy NL (ASX: LKO) has announced it has received firm commitments to raise approximately $6.5 million through a placement, which will enable the company to fully fund the drilling and testing of the Wombat 5 appraisal well in Petroleum Retention Lease 2 (PRL 2). At the time of writing, the placement will result in an estimated pro forma cash position of around $9.4 million, ensuring sufficient working capital through to 30 June 2026.

Placement Structure and Shareholder Participation

The capital raise is being executed in two tranches. Tranche One, totalling $5,995,250.25, involves the issue of 7,993,667 shares and will utilise the company’s existing placement capacity under ASX Listing Rule 7.1. These shares are expected to be issued following Lakes Blue Energy's reinstatement to trading on the ASX. Tranche Two aims to raise an additional $502,500.00 through the issue of 670,000 shares, subject to shareholder approval at a General Meeting scheduled around 22 July 2025, with issuance anticipated on or around 24 July 2025.

Director Involvement and Pricing Details

Directors of the company intend to participate in the placement, applying up to $636,024 in outstanding remuneration, pending shareholder approval. Shares will be issued at $0.75 per share — a 25% discount to the last traded price of $1.00 before the company's suspension from quotation on 2 October 2023.

Advisory and Management

Morgans Financial Limited acted as the Lead Manager for the placement and has also underwritten the offering. The company has formalised this through a Placement and Underwriting Agreement, ensuring strong financial backing for its next phase of operations.

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