Aspiring Australian urea producer NeuRizer Ltd. (formerly known as Leigh Creek Energy) has announced a one-for-ten renounceable rights issue to raise up to approximately A$3.2 million (approximately $2 million at current exchange rates) before costs.
The new shares are being offered at 2.5 Australian cents each, and for every single new share subscribed, eligible shareholders will receive one free attaching new option with an exercise price of 7 cents and term of two years, Adelaide-based NeuRizer said in an Oct. 30 ASA release.
The company said the rights issue price represents a discount of 19% on NeuRizer’s last close of A$0.031 on the ASX and 26% on NeuRizer’s 30-day WWAP of A$0.034. The rights issue started on Nov. 1 and will close on Nov. 17, 2023, unless extended.
NeuRizer said funds raised under the offer will be used for working capital purposes while it completes the strategic partner and associated fundraising process required to complete the EPCC and achieve a financial investment decision for its NeuRizer Urea Project in South Australia (GM Sept. 22, p. 29).
The project is planned to have an initial capacity of 1 million mt/y of urea and would utilize in-situ gasification (ISG) based on coal from the decommissioned Leigh Creek coal mine some 550 kilometres north of Adelaide (GM Aug. 5, 2022).
The company revealed in September that it has also had preliminary discussions on the acquisition of an ammonia and urea plant that is currently operating and has begun due diligence on another after signing a confidentiality agreement.