Join our daily newsletter At The Bell to receive exclusive market insights
Jade Gas (ASX: JGH) has appointed experienced Asia-Pacific banking executive Xie “Richy” Shaobo as Strategic Adviser while securing a strongly supported $12 million capital raising, as the company advances plans to commercialise its Mongolian gas assets.
Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.
The appointment comes at a pivotal time for Jade, which recently confirmed the booking of Mongolia’s first gas reserve and is transitioning from explorer to developer at its flagship Red Lake coal bed methane project.
Mr Xie brings more than 20 years of investment banking, commodities and capital markets experience across the Asia-Pacific region. He previously served as Managing Director and Head of Metals and Mining for North Asia and Greater China at Standard Chartered Bank and currently sits on the board of Zijin Gold, one of the world’s largest gold mining companies.
Management said the appointment reflects Jade’s growing focus on Asia as it seeks to unlock strategic opportunities, broaden its investor base and evaluate the potential for a future Hong Kong listing.
The company also announced binding commitments for a $12 million placement at 8 cents per share, led by Evolution Capital and cornerstoned by institutional investors L1 Capital and Terra Capital.
Importantly, the placement was completed at an 11.3% premium to Jade’s 15-day volume weighted average price, an uncommon outcome for a junior resources company and one that suggests strong institutional confidence in the company’s growth strategy.
A total of 150 million new shares will be issued under the placement, with proceeds earmarked for commercial and strategic initiatives, project development milestones, working capital and costs associated with advancing the company’s commercialisation strategy.
Executive director Joe Burke said the funding leaves Jade well positioned to accelerate development activities at Red Lake while leveraging Mr Xie’s extensive network and experience in Asian capital markets.
Market sentiment was broadly positive following the announcement, with investors likely encouraged by both the premium-priced capital raise and the appointment of a well-connected adviser with deep experience in commodities and cross-border transactions.
Attention will now turn to upcoming development milestones at Red Lake as Jade continues its push towards becoming Mongolia’s first commercial gas producer.
Join the discussion: See what’s trending right now on HotCopper, Australia’s largest stock forum, and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
