Jade Gas Holdings has raised A$5 million through a placement to advance commercial gas production at its Red Lake field, with a follow-up Share Purchase Plan aiming to raise an additional A$2.1 million.
- A$5 million placement at A$0.035 per share to new and existing investors
- Share Purchase Plan targeting up to A$2.1 million at the same price
- Funds to support first commercial revenues from Red Lake gas field
- Advancement of TTCBM Project and LNG production facilities
- Partnerships with Mongolian government and mining companies
Capital Raise to Drive Commercial Milestones
Jade Gas Holdings Limited (ASX, JGH) has successfully secured firm commitments for a A$5 million placement priced at A$0.035 per share, marking a significant step toward commercialising its Red Lake gas field in Mongolia. This capital injection will primarily fund strategic initiatives aimed at achieving first commercial revenues, including the completion of development plans and early works for liquefied natural gas (LNG) production.
The placement was well supported by both new and existing sophisticated investors, with Evolution Capital acting as sole lead manager. Alongside the placement, Jade plans to launch a non-underwritten Share Purchase Plan (SPP) to raise up to A$2.1 million, offering eligible shareholders the opportunity to participate at the same price point. This dual approach to capital raising underscores Jade's commitment to advancing its projects while maintaining shareholder engagement.
Progress on the Ground, Red Lake and TTCBM Project
Following the commencement of gas flow from the Red Lake gas field in August 2025 and the signing of its first LNG Gas Sale Agreement in September, Jade is poised to capitalise on growing local demand for cleaner energy alternatives in Mongolia's South Gobi region. The company’s flagship TTCBM Project, which encompasses coal bed methane resources, is central to this strategy. Jade aims to replace diesel consumption with LNG, supporting Mongolia’s energy transition and reducing environmental impacts.
Funds raised will support the finalisation of the Plan of Development and Operations (PDO), modular surface facilities for LNG production, and other early works necessary to ramp up commercial operations. This phase is critical as Jade moves from exploration and pilot production toward sustained revenue generation.
Strategic Partnerships and Regional Impact
Jade’s operations are conducted through its subsidiary Methane Gas Resource LLC, in joint venture with Erdenes Methane LLC, representing the Mongolian government. Additionally, Jade collaborates with Mongolia Mining Corporation Limited (MMC) on the adjacent Baruun Naran coal mine project, broadening its resource base and commercial prospects.
These partnerships not only enhance Jade’s resource portfolio but also align with Mongolia’s broader goals of energy independence and environmental improvement. By developing coal bed methane projects, Jade is positioned to contribute significantly to decarbonising the country’s energy mix and improving air quality.
Looking Ahead
The upcoming Share Purchase Plan will provide existing shareholders a chance to participate in Jade’s growth trajectory, though it remains non-underwritten and optional. The company’s ability to meet its commercial milestones and secure further funding will be closely watched by investors eager to see tangible returns from Mongolia’s burgeoning gas sector.
Bottom Line?
Jade’s latest capital raise sets the stage for a pivotal transition from exploration to commercial gas production in Mongolia’s energy landscape.
Questions in the middle?
- Will the Share Purchase Plan meet its A$2.1 million target given it is non-underwritten?
- How quickly can Jade scale LNG production to meet local demand in the South Gobi region?
- What are the potential risks or delays in finalising the Plan of Development and Operations?