FirstAfrica Oil proposes $53.9 million private placement of stock

By Sheri Kasprzak

New York, Oct. 4 - FirstAfrica Oil plc intends to raise up to $53.9 million in a private placement of its stock.

The offering includes up to 5,734,042,400 shares at a price that will be determined upon discussions with qualifying investors.

Because of the size of the offering, the company is seeking shareholder approval to conduct the deal.

Mirabaud Securities Ltd. will be the placement agent for the deal, which is expected to price Oct. 24.

Proceeds from the offering will be used to develop the company's EOV-7 well and provide working capital.

FirstAfrica is an oil exploration company based in London.

On Tuesday, the company's stock closed at 1.65p (London: FAO).

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