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Golden Gate Petroleum Share Purchase Plan underwritten to A$2.5m

Further to the fund raising announcement dated 16 March 2010, Golden Gate Petroleum (ASX: GGP) has advised that Novus Capital have agreed to underwrite $2.5m of the Share Purchase Plan (SPP).

Accordingly in the event the company raises less than $2.5m from the SPP, Novus Capital Ltd will place the balance to sophisticated, professional and other investors.

All securities required to be issued under in accordance with the Underwriting Agreement will be subject to Shareholder Approval.

The proceeds from the recent $2.1m placement and SPP will be used to fund drilling costs of the Bowtie and Silverwood projects and participation and drilling of 3 wells at Napoleonville Salt Dome.

Proceeds will also be used to repay $559,400 of convertible notes and for general obligations as the company continues exploration and development of the company’s United States oil and gas projects.

Disclosure: The author holds no positions in the company