Strike Energy has executed the definitive documentation for an up to $28 million secured debt facility with Macquarie Bank. The key terms of the facility were set out in the Company’s announcement on 9 October 2020 and Appendix 3B on 13 October 2020.

The facility is intended to provide Strike with bridging finance pending it securing senior Project Financing for the West Erregulla Phase 1 development. The facility will provide funding to cover appraisal drilling and long lead items for the development of the West Erregulla Phase 1 Project.

The Company will now progress toward financial close for the initial $13 million tranche of the facility, expected to occur during November 2020. The second tranche of up to $15 million, if required by the Company, remains subject to certain drilling milestones and further lender conditions and approvals.

As part of the establishment cost of the facility, Strike has issued Macquarie with 35 million options to subscribe for Strike ordinary shares at an exercise price of 29 cents (a 15% premium to the 30-day VWAP at the time of commitment), with vesting of the options subject to financial close of the initial tranche of the facility.

KeyFacts Energy: Strike Energy Australia country profile