Jade Gas Holdings Limited Secures AU$3.63 Million to Drive Gas Production Goals

Highlights:

• Successful Capital Raise: Jade Gas Holdings Limited (ASX: JGH) secured A$3.63 million through a well-supported placement at 3.3 cents per share, marking an 18.2% discount to the recent share price.
• Strategic Focus: Funds will drive the development of the Red Lake gas field, supporting four initial production wells and scaling operations to meet LNG demand in the South Gobi region.
• Additional Funding Secured: Jade amended its agreement with UB Metan LLC to access the remaining A$3.44 million from its A$11 million convertible note by January 31, 2025.

Strategic Placement Details

Jade Gas Holdings Limited (ASX: JGH) has successfully raised A$3.63 million through a well-supported placement to professional and sophisticated investors. The capital was secured at an issue price of 3.3 cents per share, representing an 18.2% discount to both the closing price of 3.9 cents on November 29, 2024, and the 10-day volume-weighted average price (VWAP) of 3.9 cents. A total of 110,000,000 fully paid ordinary shares will be issued under the company’s existing ASX Listing Rule 7.1 capacity. Settlement and allotment of shares are expected to occur on December 6 and December 9, 2024, respectively.

Use of Proceeds

The funds raised will primarily support Jade’s strategic initiatives aimed at achieving commercial gas production at the Red Lake gas field. The company has already commenced phase one drilling operations, involving four production wells designed to confirm gas flow rates and transition to revenue generation. The capital will also aid in scaling long-term development operations to meet the high demand for Liquified Natural Gas (LNG), particularly in the South Gobi region.

Positioned for Growth

Jade is poised to advance its production well program, aiming to book reserves and achieve first gas flow in the near term. Additionally, Jade has amended its payment schedule with strategic shareholder UB Metan LLC (UBM) for the final tranche of a previously agreed convertible note, securing an additional A$3.44 million by January 31, 2025.

At the time of writing, this funding effort positions Jade Gas Holdings to solidify its development phase and capitalize on the growing demand for clean energy solutions. This marks a significant step toward building a robust operation at the Red Lake gas field.

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