The Perth-based company announced the latest share placement of 55 million shares at 40c per share to raise $22 million brought total funds raised over the past two weeks to $36 million.
Yesterday’s announcement follows news earlier this month that Metex had secured chemical company Incitec Pivot as a strategic investor and potential joint venture partner through an $11 million placement.
The funds raised will be used for engineering and construction costs for the UGC trial at Bloodwood Creek and for pursuing commercialisation options for Syngas including preliminary feasibility studies.
Funds will also be used to conduct an additional campaign to expand the current JORC Code compliant coal resource of 100 million tonnes at Bloodwood Creek, along with further evaluation of Metex’s 2400-square-kilometre coal leases in the Surat Basin.
In addition, part of the capital will be used by Metex to acquire the remaining 50% stake in Carbon Energy from the CSIRO and to fund working capital and future project acquisitions.
The latest placement was made to institutional, sophisticated and professional clients of Southern Cross Equities and closed heavily oversubscribed.
The placement will be completed in two tranches, with an initial 15 million shares to raise $6 million issued under Metex’s 15% placement capacity. This tranche is expected to be completed within a week.
The issue of the remaining 40 million shares for $16 million is subject to shareholder approval with a general meeting expected to be held towards the end of June.
Last year, Metex announced it would acquire 100% of underground coal gasification company Carbon Energy after buying out CSIRO’s 50% interest in the joint venture.
Shares in Metex have fallen 2% in morning trade to 49.5c.