Australia's Elixir announces A$6.25mn share placement

Sydney-listed Elixir Energy announced on July 25 a share placement of A$6.25mn ($4.26mn) to institutional and sophisticated investors. The capital raised will be deployed in the next phases of the Grandis gas project in Queensland.

The company will issue 62.5mn new shares at a price of 10 cents/share, which represents a 13% discount to the last closing price. Placement participants will receive one of Elixir’s currently listed options (EXROBs) for every four shares issued. These already listed EXROB options have an exercise price of 12 cents and a term expiring in October 2026.

“The new capital raised will be deployed in the next phases of the Grandis project - to deal with potential contingencies that might arise from the imminent multiple stage stimulation and flow testing programme at the company’s Daydream-2 well,” Elixir stated.

Elixir added that the capital raise positions the company for the next phases of the Grandis project, including ordering long lead items for the next well and improving its negotiating position for potential farm-out negotiations post the flow testing phase.

In May this year, Elixir announced an increase in the contingent resource booking for its 100%-owned Grandis project. The company also recently entered into a data sharing agreement with fellow Australian energy company Santos in connection with the Grandis project.

Last month, Elixir was awarded a new exploration area in Queensland which lies immediately adjacent to Grandis project.