Shareholders at Providence Resources' EGM have today approved a plan to sell new shares in the company.

Earlier this month the oil exploration firm said it was carrying out a conditional share placing in order to raise $3.76m. 

The money may be required by the company because of ongoing delays in receiving a loan advance of $9m from Chinese investor, APEC Energy Enterprises Limited. 

APEC has missed a series of deadlines set by Providence for receipt of the funds, which are to be used to cover the exploration costs at the firm's Barryroe site off the Cork coast.  

Providence has given it until close of business today to deliver the funding, which was originally due on June 14. 

Chief executive Tony O'Reilly Jr has blamed the problem on an international bank transfer delay. 

On September 12 Providence said it had conditionally raised cash by proposing to issue nearly 60 million new shares to institutional and other investors at a price of £0.051 per share. 

The money from the placing is to be used to re-engineer the company's business model, fund a site survey at Barryroe and for working capital. 

Providence has said that if it does not receive the proceeds of the placing, its ability to continue as a going concern will be compromised. 

The proceeds of the share sale will only provide working capital up to February 2020. 

Providence's board is currently undertaking a strategic review of the options available to the company on future financing alternatives to finance future working capital obligations beyond that date. 

At the firm's AGM earlier this month, Tony O'Reilly Jr said he fundamentally believed that the $9m loan from the Chinese backers will be delivered.

He also said he has staked his reputation on the issue. 

In a statement issued after its EGM today, Providence said no funds had been received in the company's account from APEC so far this morning. 

"Noting that the extension runs to the close of business today, the company will issue a further announcement updating on the status of the APEC loan amount," the statement added.