Jade Gas (ASX:JGH) raised $1.8 million through a strategic equity placement, marking a pivotal step toward establishing Mongolia’s inaugural commercial gas operation.
The capital injection, sourced from sophisticated and professional investors, involved the issuance of 60 million new ordinary shares priced at $0.03 each.
The financial boost is specifically earmarked to transition the flagship Red Lake Project from its recently completed appraisal phase into active commercial production.
The placement includes an incentive for backers, with one free-attaching option issued for every share, exercisable at $0.053 through October 2028.
The funding arrives at a critical juncture for the South Gobi-based project.
Following the technical success of Mongolia’s first horizontal coal bed methane wells in 2025—which achieved continuous gas flow after a rigorous dewatering process—Jade Gas is now pivoting toward regulatory and infrastructure milestones.
The company is currently preparing a comprehensive "plan of development and operations" for Mongolian regulators, a prerequisite for securing a formal exploitation licence.
While the firm reported a net loss of $4.7 million for the 2025 financial year, this fresh capital stabilises its cash position to pursue a maiden gas reserve booking.
With a conditional LNG sale agreement already signed with UB Metan and a development partnership brewing with Langrun, the project aims to scale up to 175 wells.
At the time of reporting, Jade Gas’ share price was $0.032.