Prairie Provident Resources Inc. is planning a preferred share financing to raise US$18.9 million for additional equity capital. The company is also seeking amendments to extend maturities, defer cash interest obligations, and adjust financial covenants for its senior secured credit facility and outstanding second lien notes. The completion of these agreements is targeted for October 29, 2025, subject to TSX approvals. The financing and amendments are crucial for the company’s business plan, which includes using the capital to pay existing obligations, strengthen working capital, and fund a development program for new wells. The financing involves preferred shares with an 8% annual yield and warrants for common shares.

Prairie Provident’s focus on the Basal Quartz/Ellerslie play has led to positive drilling results but a lack of capital resources for growth. The company faces a significant working capital deficit and liquidity issues, which the proposed financing and debt amendments aim to address. The company is seeking TSX approvals for the transactions, as they involve related parties and significant considerations. The company has applied for a ‘financial hardship’ exemption to proceed without shareholder approval due to its financial difficulties. The proposed financing and debt amendments are crucial for stabilizing and growing Prairie Provident’s business.

Read more at GlobeNewswire: Prairie Provident Announces Non-Binding Term Sheets for