Elixir Energy Ltd (ASX:EXR) has launched a share purchase plan (SPP) to raise up to $3.5 million. The SPP is available to eligible existing shareholders on the same terms as the recent placement.
Elixir plans to use proceeds from the SPP and the $7 million placement to fund initiatives at its coal bed methane and green hydrogen projects in Mongolia as well as at its Queensland gas project.
This will involve the drilling, completion, stimulation and flow testing of the Daydream-2 appraisal well at the Grandis Gas Project in Queensland, where the well is due to spud in late October.
READ: Elixir Energy launches SPP to raise up to $3.5 million for well development and drilling programs
The funds will also support the ongoing Nomgon Project pilot, appraisal and exploration drilling programs, as well as costs in relation to pursuing the Gobi H2 Project in Mongolia.
Shareholders on record at 7.00pm (AEST) on August 25, 2023, with an address in Australia or New Zealand can apply for up to $30,000 worth of new shares at an issue price of 7 cents per share.
For each two new shares acquired, the company will also issue one free attaching listed option, exercisable at 12 cents and with a term of three years.
READ: Elixir Energy raising up to $10.5 million to fully fund work at Daydream-2 ahead of October spud
Elixir intends to raise $3.5 million and can take an additional $2 million, at the board’s discretion.
The SPP is conditional on shareholder approval to issue the SPP shares and SPP options at the company’s Annual General Meeting (AGM) to be held on October 16, 2023.
Elixir’s managing director Neil Young said: “The SPP element of the capital raising is designed to provide all shareholders with the opportunity to support the company on the same terms as for the placement participants.
"We look forward to keeping all of our shareholders well informed as we approach the spud date for Daydream-2, which we view as a pivotal catalyst in the company’s growth plans.”