NH3 Clean Energy Limited (ASX:NH3) Secures A$725,000 for WAH2 Project
Funding Announcement
NH3 Clean Energy Limited (ASX: NH3) has completed a capital raise, securing A$725,000 through an equity placement. This fundraising involved the issuance of 40,277,778 new shares at an issue price of A$0.018 each, representing a 10% discount to the last closing price on December 12, 2024.
The capital raised, net of costs, amounts to A$703,605 and saw strong support from existing shareholders and new investors, including institutional participation. Notably, the Company’s Chairman, Charles Whitfield, participated in the placement, signalling confidence in NH3’s strategy and growth prospects.
Project Advancement
The funds will be allocated to completing Pre-FEED (Preliminary Front End Engineering and Design) activities, focusing on commercial agreements for gas supply, CO2 sequestration, and infrastructure access related to the WAH2 Project. This progression is essential for transitioning toward the Full Engineering and Design (FEED) phase.
Following these preparations, NH3 Clean Energy plans to engage potential off-take and strategic partners in the first quarter of 2025, leading to significant milestones in developing what is touted as Australia’s leading clean ammonia project. The FEED phase is anticipated to span approximately 12 months, with a Final Investment Decision targeted for the end of Q1 2026.
Chairman Remarks
Chairman Charles Whitfield expressed satisfaction with the funding response, stating, “We are delighted by the response from both existing shareholders and new investors… this raise is very modest, but it will provide sufficient funding to achieve a number of milestones that should significantly rerate the Company’s enterprise value.”
Directors’ participation in the placement is subject to shareholder approval at the upcoming annual general meeting. The new shares issued will rank equally with existing shares and fall under the Company’s existing 15% placement capacity per ASX Listing Rule 7.1.
Motley Fool contributor Lauren Surplice has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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