Elixir Energy (ASX:EXR) finds strong support for oversubscribed share purchase plan

• Elixir Energy (EXR) has raised around $1.65 million from an oversubscribed share purchase plan (SPP) which originally sought to raise just $250,000
• This comes after a recent oversubscribed placement sought $1.25 million, but had over $2 million in bids and was scaled back to $1.65 million
• Now the SPP has also been massively oversubscribed, with over $2.9 million in subscriptions scaled back to $1.65 million
• The company is now more-than-fully-funded to continue delineation and exploration work at its Nomgon coal bed methane project in Mongolia
• It seems everyone wants a piece of Elixir Energy right now. The company closed 13 per cent higher on Tuesday at 2.6 cents per share

Elixir Energy (EXR) has raised around $1.65 million from an oversubscribed share purchase plan (SPP) which originally sought to raise just $250,000.

Just can’t get enough

The company and its shareholders must be brimming with confidence after the success of the recent capital raising efforts.

A recent oversubscribed placement sought $1.25 million, but had over $2 million in bids and so was scaled back to $1.65 million.

Now, the SPP has also been massively oversubscribed, with over $2.9 million in subscriptions scaled back to $1.65 million.

This makes the combined total of the scaled-back offers $3.35 million (including director allotments, also scaled back) when the company was only seeking $2 million.

The directors have had something of a tricky time balancing the interests of shareholders and placees, seeking to not dilute the interests of either cohort too much.

Elixir’s Managing Director Neil Young says the board’s been delighted to receive such strong support.

“[The company] has sought to treat all stakeholders equitably in the overall capital raising process. The additional monies will bring forward the company’s exploration and delineation plans by around a year — notwithstanding the unique and difficult global circumstances,” Neil said.

“I’m sure all shareholders will join us in eagerly awaiting the imminent drilling
campaign,” he added.

Moving forward

The company is now more-than-fully-funded to continue development at its Nomgon coal bed methane project in Mongolia.

This includes expanding the delineation and exploration program, slated to begin in July, through seismic and drilling campaigns.

With increased 2D seismic coverage and additional exploration drilling across both the Nomgon sub-basin and other sub-basins around the area, Elixir is confident it will continue to grow the potential of its Mongolian holdings.

It seems everyone wants a piece of Elixir Energy right now. The company closed 13 per cent higher on Tuesday at 2.6 cents per share.