The placement to undisclosed investors was priced at 8c per new share, with a share purchase plan for $2 million to be launched.
The fundraising comes as Allegiance "finalise(s)" a US$15 million debt facility, with first production from New Elk flagged for mid-2021.
New Elk's capital requirement has previously been estimated at $13.5 million.
Annual coal sales are targeted to reach a run-rate of 1.6 million tonnes by December 2021.
Shares in Allegiance traded at A8.8c on Monday, capitalising the company at $54 million.