Dragon Energy Ltd announced an underwritten 1 for 2 non renounceable rights issue to raise approximately AUD 21.35 million. The Company will also undertake a 1 for 3 pro rata non renounceable entitlement issue of options to shareholders to raise approximately AUD 47,460. Together, the Rights Issue and Option Entitlement Issue will raise up to AUD 21.4 million.

The Rights Issue will be offered to existing shareholders on the basis of one (1) new share for every two (2) shares held at the record date at an issue price of AUD 0.30 per share (New Share) to raise approximately AUD 21.35 million (before costs).

The Option Entitlement Issue will be offered to existing shareholders on the basis of one (1) New Option for every three (3) shares held at the record date at an issue price of AUD 0.001 per New Option to raise approximately AUD 47,460 (before costs). The Company will apply for quotation of the New Options on the Australian Securities Exchange.

Based on the Company's current issued capital the Offers will result in 71,189,854 New Shares and 47,459,902 New Options being issued.

The Company's major shareholder, Shandong Taishan Sunlight Group Company Limited (Shandong Group), has committed to underwrite a minimum of AUD 18.0 million for the Rights Issue. The Shandong Group has also confirmed their intention to subscribe for their full entitlement under both the Rights Issue and Option Entitlement Issue.

Commenting on the Offers, Mr Gang Xu MD of Dragon Energy said that "We are very pleased to offer our shareholders the opportunity to participate in these capital raisings. We will fast track our flagship projects and continue to build a quality portfolio of mineral projects. We are very privileged to secure underwriting support from our major shareholder the Shandong Group. The funds from these capital raisings will underpin an exciting future for Dragon Energy."

(Sourced from ABN Newswire)