Pilot Energy entered into six binding convertible note agreements with a syndicate of investors led by Discovery Investments for an issuance totalling $3.5 million.

The notes will be issued in two tranches, with the first tranche worth $1 million and the last tranche worth $2.5 million.

The issuance is subject to shareholder approval.

Funds raised from the issuance will be used to develop the company's Mid West Clean Energy Project in Western Australia and for general working capital and corporate overheads.