Australia’s Elixir Energy plans to raise A$10.5mn

Australia’s Elixir Energy has secured a funding injection of approximately A$7mn ($4.5mn) through strategic placement of new shares, it announced on August 29. The company is also planning a share purchase plan (SPP) to secure up to A$3.5mn in gross proceeds. 

The placement involved the issuance of approximately 100mn new shares to a select group of institutional and sophisticated investors, each priced at A$0.07/share. This pricing is at a 14.6% discount in relation to the latest closing price, as well as a 16% discount based on the 5-day volume-weighted average price (VWAP).

The participants in this placement endeavour will not only become shareholders but will also be granted placement options, an additional feature of this financing mechanism.

In a parallel move, the company is extending the opportunity to its existing shareholders to participate through an SPP. This initiative is set to provide these shareholders with the chance to acquire new fully paid ordinary shares at the same A$0.07/share, mirroring the terms of the placement.

The SPP aims to secure up to A$3.5mn in gross proceeds, with a certain degree of flexibility for the company to accommodate more or adjust for potential over-subscriptions.

A substantial portion of these funds will be channeled towards the drilling of the Daydream-2 appraisal well in Queensland, Australia. Furthermore, the financing will also be utilised for the continuous pilot, appraisal, and exploration drilling initiatives associated with the Nomgon CBM project and the Gobi H2 project in Mongolia.

Moreover, certain members of Elixir's board of directors have agreed to participate in this placement, to the tune of approximately A$150,000.