Elixir Energy Ltd (ASX:EXR) is well capitalised ahead of drilling its Daydream-2 appraisal well later this month, having received share purchase plan (SPP) applications for $1,724,550, bringing the total amount via the recent placement and SPP to $8.7 million.
The Daydream-2 appraisal, part of the Grandis Gas Project, in the Surat Basin in Queensland, is due to spud by around the end of October. The funds raised will assist with the drilling, completion, stimulation and flow testing of the well.
Proceeds from the raise will also support the ongoing Nomgon Project pilot, appraisal and exploration drilling programs at its Mongolian gas project, as well as costs related to pursuing the company’s Gobi H2 Project also in Mongolia.
"Strong show of support"
Elixir managing director Neil Young said, “The board is pleased to receive a strong show of support from the company’s existing shareholders in what are tough capital market conditions.
“It is a point of principle for the Board to treat all stakeholders equitably in our capital raising processes and the SPP has done this following the recent placement to sophisticated investors.
“The additional monies set up the company well to vigorously pursue its projects – including the imminent and high impact Daydream-2 appraisal well.”
SPP closes
Elixir received SPP applications totalling $1,724,550. For each two new shares acquired under the SPP, the company will issue one free attaching listed option, exercisable at 12 cents and with a term of three years.
Both the placement options and the SPP options will have the same terms and will expire on October 17, 2026. The company will apply for quotation of those options on the ASX.
Subject to shareholder approval at the company’s annual general meeting on October 16, 2023, the shares and options will be issued on October 17, 2023.