ReconAfrica upsizes offering to C$16.5m on strong demand

Reconnaissance Energy Africa Ltd. (TSXV: RECO) announced it has upsized its previously announced overnight marketed public offering of units to C$16,500,000 due to strong investor demand. The company has entered into an underwriting agreement with Research Capital Corporation as the lead underwriter, and Canaccord Genuity Corp. and Haywood Securities Inc., to purchase 33,000,000 Units at C$0.50 per Unit. Major indications of lead orders have been received from BW Energy Limited and management members, anticipating the purchase of over C$4,000,000 of Units. BW Energy has committed to a follow-on strategic equity investment in the Company of approximately C$2,000,000. The net proceeds will primarily fund exploration activities, including the drilling of the Kavango West 1X well, with work on the site underway and drilling scheduled for late June. The Underwriters have also been granted an over-allotment option to purchase additional Units. The offering is expected to close around June 16, 2025.