Elixir Energy (ASX:EXR) raises $10M through placement

• Elixir Energy (EXR) has raised $10 million through a significantly over-subscribed placement of new shares
• The company accepted commitments to raise the funds through a placement of new shares at 36 cents per share, with just over 27.7 million to be issued
• The issue price presents a 20 per cent discount to the last closing price, and an 18 per cent discount to the five-day volume-weighted average price
• A share purchase plan will also be undertaken through the issue of new fully paid ordinary shares at 36 cents per share, targeting $20 million
• Funds raised will allow the company to materially expand and accelerate its gas exploration and appraisal program in Mongolia, speeding up production by up to 24 months
• Elixir Energy is down 8.89 per cent, trading at 41 cents
  

Elixir Energy (EXR) has raised $10 million through a significantly over-subscribed placement of new shares.

The company accepted commitments to raise the funds through a placement of new shares at 36 cents per share, with 27,777,778 to be issued.  The issue price presents a 20 per cent discount to the last closing price, and an 18 per cent discount to the five-day volume-weighted average price.

A share purchase plan will also be undertaken through the issue of new fully paid ordinary shares at $0.36 per share, in line with the placement. Given the strong support retail shareholders have provided the company, the share purchase plan (SPP) will target proceeds of $20 million.

Funds raised will allow the company to materially expand and accelerate its gas exploration and appraisal program in Mongolia, speeding up production by 18 to 24 months.

The work will include multiple new core-holes across the 30,000-kilometre-squared project area, accelerating pilot production testing programs and delving into more intensive and detailed geo-technical work.

“Elixir’s successful exploration and appraisal efforts in Mongolia over the last year have now placed the company in the fortunate position of being able to prosecute a very material expansion of that program, with a view to accelerating the goal of reaching development and production,” said Elixir’s Managing Director, Neil Young.

“In addition to the support from existing and new sophisticated investors in the successful placement announced today, we are pleased to provide the opportunity to ensure all of our shareholders have the chance to share in our growing success by participating in a SPP.”

Elixir Energy is down 8.89 per cent, trading at 41 cents at 12:45 pm AEST.