Frontier Energy (ASX:FHE) secured firm commitments for a AU$110 million capital raising via a conditional placement of 550 million shares at AU$0.20 each, contingent on shareholder approval and credit-approved senior debt financing, according to a Thursday Australian bourse filing.
The senior debt process is advancing in parallel, with tier-one lenders offering indicative terms supporting up to around 70% of project costs, a tenor of up to 20 years, and pricing aligned with infrastructure market standards, per the filing.
The company is expected to obtain credit-approved commitments for the senior debt finance in July, the filing said.
Proceeds will fund stage one of a 132-megawatt solar farm and 81.5-megawatt battery storage system, including substation and transmission works, with fixed construction costs revised to about AU$327 million due to expanded scope, higher-capacity equipment, and inflation.
Proceeds from the conditional placement will also support early works for a stage two expansion, the filing added.
The company's shares fell around 10% in recent Thursday trade.