Target Energy Limited (ASX:TEX) announced that it has agreed terms with existing investor, Wyllie Group Pty Ltd. for a private placement of 60,000,000 unlisted convertible notes at AUD 0.05 per note for gross proceeds of AUD 3,000,000 on October 21, 2014. The notes will be issued at par value. The notes will mature on the earlier of March 31, 2017, the date that is 14 days after the settlement of the sale of all of the company's interest in the Fairway Project, or any earlier date on which the principal amount is required to be repaid in full. The notes will bear coupon at a fixed rate of 10% per annum payable semi-annually in arrears. Each note is convertible into one common share at the election of the investor. The notes are transferable but only to sophisticated or professional investors. The company may choose to redeem the notes by paying principal amount on all unconverted notes, all unpaid accrued interest and the overdue interest, and the maturity fees. The maturity fees is equal to higher of 10% per annum accrued interest on the face value of notes and the 0.5% of the pre-tax proceeds received by the company in relation to the sale of all the company's interest in the fairway project. The notes will be secured by a second-ranking security charge over the company's interest in the Fairway project. The transaction will be closed without obtaining shareholder approval and is subject to certain conditions. The transaction will be issued on October 23, 2014.

On November 21, 2014, the company announced that the transaction has been approved by the shareholders in the Annual General Meeting.

During the quarter ending December 31, 2014, Target Energy Limited closed the transaction.