It will issue 27.7 million new shares.  

 

Elixir is chasing $20 million via a share purchase plan at the same price, with board discretion to increase or decrease this. 

 

Minimum acceptance is $500 and maximum $30,000, in increments of $500, $1000 and $5000. The company, with a market cap of $366 million, has close to 7000 shareholders on the books. 

 

It is not underwritten and there are no lead managers, meaning no broker fees for its small end of town supporters, who are legion across trade-focussed site Hot Copper and some Reddit pages.  

 

Elixir's last SPP of 11 months ago saw strong support and similarly strong option conversion at the end of the year at a price of 6.79c each. 

 

The price offered today is a 20% discount to the last closing price and an 18% discount to the 5-day VWAP, although those who missed out on Elixir when it was still valued at 2cps not so long ago could be kicking themselves. 

 

Money goes to expanding its 2021 Mongolian work program and it now has a tighter timeline of development and production from its frontier acreage it hoopes to bring forward by two years.

 

It will use the cash for multiple new core holes across the 30,000sq.km / 7 million acre PSC it holds with the Mongolian government; to undertake the nation's first 3D seismic acquisition for CSG; to accelerate pilot production testing programs over the next 18 months, and more intensive geo-technical work. 

 

It also suggests "complementary new ventures". 

 

The company received the nation's first CSG PSC in 2018 and it hopes by proving up a substantial gas resource at Nomgon IX it could both develop a new, local gas market and send more over the border to China. 

 

"We think it fairer to all those loyal supporters to give them the chance to participate in the raise on the same terms as the big end of town," managing director Neil Young told Energy News today. 

 

Elixir shares are in a trading halt at 41c each. It has a market cap of $366 million.