Leigh Creek Energy (ASX: LCK) company will raise $5.1 million through a rights issue and placement to fund development of chemicals processing opportunities in South Australia.
The company said in a statement that its in situ coal gasification demonstration plant at the former Leigh Creek coal fields has notched up 13 days continuous production of commercial quality syngas.
After 89 days of continuous operation, the company is confident to confirm the syngas has potential as low-cost feedstock for high-value ammonia and urea products.
Leigh Creek syngas now contains up to 20 per cent methane.
The compony announced a placement and 1:15 Rights Issue to existing Shareholders at $0.12 per share.
Leigh Creek Energy succeeded in October from the major brown coal deposit no longer used for electricity generation.
The company envisages a pipeline and chemicals and fertiliser production at a nearby sea port.
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