Elixir Energy signed agreements with Gobi Terra (UK) Ltd. for a phased exit from Mongolia. Two JVs will be formed, with Gobi Terra holding 51% stakes in Elixir’s CBM and renewable energy assets.Gobi Terra will fully fund Elixir in the CBM JV until FID, with an exit option at $0.30/GJ of 2P reserves, capped at $30M.
In the renewables JV, Gobi Terra holds 51% and will cover all costs to FID on solar/wind projects.Elixir will receive $2M plus $20,000 per MW (up to 50 MW) for a solar farm and $1M plus $10,000 per MW (up to 200 MW) for a wind farm.
These payments will enable Elixir’s full exit from renewable assets, allowing focus on an Australian gas project in the drilling phase.Elixir MD Neil Young stated that the farmout deal allows Elixir to focus on its Grandis project in Queensland, as all Mongolian business costs will be covered until FID. He added that the agreement offers a potential exit on valuable pre-agreed terms, with possible payments totaling A$56 million.
