Comet Ridge (ASX:COI) has received firm commitments for a $40 million placement and launched a $5 million share purchase plan (SPP) to acquire full ownership of the Mahalo Gas Project in Central Queensland.
The placement comprises two tranches at $0.10 per share, representing a 21.2% discount to the last closing price of $0.13 on 19 June 2026. This also results in the issuance of 390.24 million new shares.
Tranche one will raise $30.6 million using existing placement capacity, while tranche two requires shareholder approval to raise $9.4 million.
Participants in the offer will receive one free attaching option for every two securities allotted, with a strike price of $0.15 per option expiring 30 June 2028, subject to shareholder approval.
Managing Director Tor McCaul says he is “delighted” with the level of support the company has received from current and new shareholders.
“These funds will enable Comet Ridge to secure 100% ownership of a very large and strategic position in the east coast gas market, the Mahalo Gas Hub, and to optimise the entire Mahalo Gas Hub as a single coordinated development,” McCaul says.
Taylor Collison, Morgans, and Aitken Mount Capital Partners acted as joint lead managers for this placement.
Proceeds will be earmarked for the settlement of the Santos transaction costs to acquire the remaining 42.86% of the Mahalo Gas Project from Santos QNT.
Funding will also be used to advance the project towards a final investment decision, as well as for working capital.
Settlement of tranche one is expected on 30 June 2026, with allotment on 1 July 2026. The SPP booklet will be dispatched in the coming days, with the offer closing on 17 July 2026.
Meanwhile, Comet Ridge directors and management have committed to invest $300,000 in tranche two, subject to shareholder approval at a general meeting scheduled for early August 2026.
On completion of both placement tranches and assuming full SPP subscription, the company will have 1.64 billion ordinary shares on issue, up from 1.20 billion currently.
The company plans to transition its Mahalo Gas Hub assets into gas supply for the east coast market, with initial development potentially supplemented by sequential development of its other 100% held permits.
Comet Ridge is an Australian energy company focused on developing natural gas resources for the east coast market.
Write to Paula Fabe at Mining.com.au
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