Niko secures $69m loan from Canadian banks

Vol 8, PW 1 (07 Apr 04) News in Brief

Canadian explorer Niko Resources has secured a $69m loan from local financial institutions in Canada.

On 2nd April, Niko told the Toronto Stock Exchange that it had entered into a bought deal financing agreement with a syndicate of underwriters and will issue 2,000,000 common shares to the banks at a price of $34.50 per share. Niko said the proceeds of this issue would be used for its exploration and development programmes in India and Bangladesh and for general corporate purposes.

The financial syndicate is led by FirstEnergy Capital and includes Canaccord Capital Corporation, Orion Securities, Octagon Capital Corporation and Maison Placements Canada. Separately, Niko has contracted a rig for the Feni and Chattak gasfields in its Bangladesh Block 9.

In March, the company started drilling in the Feni field and anticipates first production by mid-2004.