- Leigh Creek Energy (LCK) raises $18 million to progress stage one of its eponymous project
- Shares were issued at 18 cents, which was a 21.6 per cent discount to the five-day volume-weighted average price
- Participants also received an attaching unlisted option, exercisable at 28 cents with expiry in three years
- The company will use the money to progress its namesake project towards production of commercial syngas and power generation
- Leigh Creek is down 13 per cent on the market with shares trading at 20 cents at 11:19 am AEST
Leigh Creek Energy (LCK) has successfully raised $18 million to progress stage one of its eponymous project.
Located in South Australia, the company's namesake project is being developed into a producer of low-cost, nitrogen-based fertiliser for local and export agriculture markets.
The company entered a trading halt on June 11 but did not disclose how much it intended to raise or what it would use the funds for.
Shares were issued at 18 cents, which represents a 20 per cent discount to the last trading price of 22.5 cents and a 21.6 per cent discount to the five-day volume-weighted average price.
Participants also received an attaching unlisted option, exercisable at 28 cents with expiry in three years.
Evolution Capital Advisors acted as lead manager and, subject to shareholder approval, will receive a six per cent fee on the funds raised and 10 million options exercisable at 28 cents.
"This $18 million capital injection will enable LCK to continue to move forward with stage one of our flagship project with added confidence and puts us one step closer to our goal of building a plant at Leigh Creek which can deliver urea into the Australian and overseas markets," Managing Director Phil Staveley commented.
"In the coming weeks we expect to execute the final agreement for engineering, procurement, construction and completion of the urea plant with Korean giant, DL E&C and offer further equity to our existing, loyal shareholders."
Leigh Creek was down 13 per cent on the market with shares trading at 20 cents at 11:19 am AEST.