Icon said the proceeds from the capital raising would be used to fund its dewatering testing operations of its coal seam methane wells in ATP 626P in the Surat Basin and for ongoing administration work.

The company said 11 million shares have been placed at a price of 20.1c per share, four million at 7.5c and one million at 29c per share.

Five million shares are part of an agency agreement settlement to secure a memorandum of understanding and gas sales agreement to develop the gas reserves in ATP 626, Icon said.

According to Icon, these shares will rank in hand with other issued capital.