ReconAfrica Secures C$36.8 Million to Accelerate Drilling in Namibia and Gabon
Calgary, Monday, 19 January 2026.
ReconAfrica finalized a C$36.8 million raise today to fund critical drilling, with strategic partner BW Energy increasing its stake to nearly 7% of the company.
Structuring the Capital Injection
The offering, led by Research Capital Corporation as the sole bookrunner, involved the issuance of 38,736,945 units at a price of C$0.95 per unit [1]. This financing structure was designed to provide both immediate capital and potential future liquidity; each unit consists of one common share and one-half of a common share purchase warrant [1]. Investors holding these warrants retain the option to purchase additional common shares at a strike price of C$1.20 over the next 36 months, a mechanism that could fund further operations if the company’s share price appreciates [1].
Operational Acceleration in the Kavango Basin
ReconAfrica has clearly delineated the allocation of the C$36.8 million in gross proceeds to prioritize asset development in Namibia and Gabon. A significant portion of the funds is dedicated to conducting multi-zone production testing at the Kavango West 1X well and advancing operations at the Kavango appraisal well [1]. Furthermore, the company intends to apply capital toward its offshore assets in Gabon, specifically to re-process seismic data at the Loba discovery and to expand the exploration inventory on the Ngulu block [1].
Strategic Alignment with BW Energy
A pivotal component of this transaction is the continued investment by strategic partner BW Energy. BW Energy acquired 2,315,780 units in the offering for a total consideration of C$2,199,991 [1]. This purchase consolidates BW Energy’s position, bringing its total ownership to 26,338,780 common shares, which represents approximately 6.96% of ReconAfrica’s outstanding shares on an undiluted basis [1]. If BW Energy were to exercise all its warrants, its ownership stake would increase to approximately 12.77%, signaling strong confidence in ReconAfrica’s exploration potential [1]. Additionally, certain insiders participated in the raise, acquiring 107,000 units, which classifies as a related-party transaction [1].
Market Context and Upcoming Listings
The closing of this offering occurs as ReconAfrica navigates a volatile trading environment; as of January 18, 2026, the stock was trading at C$0.85, with a 50-day trading range spanning from C$0.44 to C$1.32 [2]. The company has a market capitalization of approximately C$287.05 million [2]. Moving forward, the warrants associated with this offering are anticipated to begin trading on the TSX Venture Exchange on or about January 23, 2026, under the ticker symbol RECO.WT.C [1]. The underwriting syndicate, which included Canaccord Genuity Corp. and Haywood Securities Inc., received a cash fee equal to 6% of the gross proceeds for their role in facilitating the transaction [1].