06:52 AM EDT, 09/16/2024 (MT Newswires) -- Prairie Provident Resources ( PRPRF ) over the weekend said it has struck an agreement to extend the maturity of its senior secured credit facility to March 31, 2026 and enhance its flexibility with modified covenants.

The company also announced a $13.2 million rights offering supported by participation commitments of $12 million, composed of $11.6 million from its largest shareholder PCEP Canadian Holdco and $400,000 from directors and management, as well as complementary amendments to its outstanding second lien notes.

Net proceeds from the rights offering are expected to fund a capital program focused on drilling at least two wells in the Basal Quartz formation before the end of 2024, workers to enhance the productivity of existing wells and general corporate purposes.

A portion of the net proceeds will be directed toward settlement of a US$2.3 million advance under the company's second lien note facility received in May, by way of a $3.1 million setoff against the subscription price payable by PCEP under the rights offering.

Prairie Provident's share price fell 14% on Friday to $0.03, hitting 52-week lows.