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- Gas company Leigh Creek Energy (LCK) has completed a $1.6 million share placement to support the commercialisation of its flagship energy project
- The company has already completed a demonstration plant and the maiden gas reserve for the Leigh Creek Energy Project in South Australia
- The private placement was made through the issue of 17.53 million shares at a price of 9.1 cents apiece
- This represents a 20 per cent premium of the 15-day volume-weighted average price
- In addition to the placement, the company will issue almost 11 million unlisted options with a three-year expiry date
- Shares in Leigh Creek are trading 4.5 per cent down at 10.5 cents apiece
Leigh Creek Energy (LCK) has completed a $1.6 million share placement support the commercialisation of its flagship energy project in SA.
The Leigh Creek Energy Project will draw upon remnant coal resources using In Situ Gasification techniques, to produce synthetic natural gas or ammonium nitrate products.
Already, the company has successfully completed, and subsequentially shut down, a demonstration plant at the project.
It has also received PRMS Certification of 1,153PJ of 2P gas reserve, the largest uncontracted 2P gas reserve on the east coast of Australia.
The $1.6 million private placement was made through the issue of 17.53 million shares to sophisticated and professional investors at an issue price of 9.1 cents per share.
This issue price represents a 20 per cent premium of the 15-day volume-weighted average price.
In addition, the company will issue almost 11 million unlisted options all which expire in three years time on March 16, 2023.
The first 5,494,505 options will have an exercise price of 13.65 cents per option which the next 5,494,505 options with be exercisable for 18.2 cents each.
Shares in Leigh Creek are trading 4.5 per cent down at 10.5 cents apiece at 12:35 pm AEDT.
