ENRG Elements Offers 1.6 Billion Shares at Half Price to Fund Growth
ENRG Elements Ltd has announced a renounceable entitlement offer to raise up to $1.6 million, priced at a 50% discount, to fund gold-focused business development and exploration in Central Asia.
- 1-for-2 renounceable entitlement offer at 0.1 cents per share
- Free attaching options exercisable at 0.2 cents over four years
- Offer partially underwritten to $1 million by Mahe Capital
- Funds targeted for gold exploration and maintaining existing projects
- Early-stage talks underway to divest non-core assets
Capital Raise Details
ENRG Elements Ltd (ASX, EEL) has launched a renounceable entitlement offer aiming to raise approximately $1.6 million by issuing new shares at 0.1 cents each. This price represents a significant 50% discount to the company’s last traded price of 0.2 cents, and a 29% discount to its 30-day volume weighted average price. Eligible shareholders will receive one free attaching option for every two shares subscribed, exercisable at 0.2 cents over a four-year term.
The offer is partially underwritten to $1 million by Mahe Capital Pty Ltd, with company director Jiandong He sub-underwriting $240,000. Shareholders with registered addresses in Australia, New Zealand, or China as of the record date are eligible to participate, with rights trading commencing on 29 September 2025 and the offer closing on 17 October 2025.
Strategic Focus on Gold Exploration
Funds raised through this capital raising will be directed towards advancing business development opportunities with a focus on gold exploration in Central Asia. This marks a strategic pivot or expansion from ENRG Elements’ established uranium and copper projects, signaling management’s intent to diversify and capitalize on emerging opportunities in the gold sector.
Alongside new project evaluations, the company plans to continue exploration activities on its existing projects to maintain tenure, ensuring its asset base remains robust while pursuing growth avenues.
Asset Portfolio and Market Position
ENRG Elements holds significant interests in uranium and copper projects, including the Agadez Uranium Project in Niger, which boasts an inferred resource of 21.5 million pounds of contained uranium oxide. The company also has stakes in copper-silver projects in Botswana’s Kalahari Copper Belt, a region known for its mineral potential and stable mining jurisdiction.
In addition to the entitlement offer, ENRG Elements disclosed it is in early-stage discussions to divest certain non-core assets, though no binding agreements have been reached. This potential divestment could streamline the company’s portfolio and provide additional capital or strategic focus.
Market and Shareholder Implications
Managing Director Paul Ingram described the fundraising as a “major step in the value creation journey” for the company, underscoring management’s confidence in the strategic direction. The issuance of over 1.6 billion new shares and accompanying options will significantly increase the company’s share capital, a factor shareholders will weigh against the potential for enhanced project development and value creation.
Investors will be watching closely to see the uptake of the entitlement offer, the progress of gold exploration initiatives, and any developments regarding the divestment of non-core assets, all of which will shape ENRG Elements’ trajectory in the coming months.
Bottom Line?
ENRG Elements’ capital raise sets the stage for a pivotal shift towards gold exploration, but execution and market response will be critical.
Questions in the middle?
- Will the entitlement offer achieve full subscription given the significant discount?
- What specific gold projects in Central Asia is ENRG Elements targeting for development?
- How might the potential divestment of non-core assets impact the company’s financial position and focus?
