Tanami Gold (ASX:TAM) has announced an entitlement offer which will aim to raise $70.5 million before costs for its Central Tanami Project, located 650km northwest of Alice Springs.
The offer involves selling fully underwritten one for one, pro-rata, renounceable, and new fully paid ordinary shares for $0.06 per unit to eligible investors.
The deal will open at 9.30am New South Wales time on 18 May 2026 and close at 5pm on 27 May.
Tanami has appointed Bell Potter Securities to underwrite the deal, according to a new underwriting agreement that both parties signed on 8 May.
Bell Potter and Evolution Capital will jointly act as lead managers for the offer.
Key shareholders APAC Resources, Metals X (ASX:MLX), and Everbright Securities Investment Services collectively hold 49.2% of existing company shares. All of them have expressed intentions to take up their entitlements in full.
Proceeds will be used to cover the costs of Groundrush exploration decline ($37.2 million), surface resource reverse circulation and directional drilling ($5.5 million).
central camp upgrades and refurbishment ($11.4 million), non-processing infrastructure ($11.6 million), and other general working capital ($4.8 million).
The company will not offer the issue to shareholders with registered addresses outside of Australia, New Zealand, Hong Kong, Mauritius, the British Virgin Islands, Singapore, European Union (excluding Austria and France), and Taiwan.
This decision is promised to avoid additional legal and regulatory compliance costs from multiple jurisdictions.
“This is an exciting new phase of growth for Tanami Gold. The renounceable entitlement offer enables strengthening of the company’s financial position and ensures it is appropriately capitalised to progress development of the Central Tanami Project,” Tanami Chairman Arthur Dew says.
“The structure of the offer as a renounceable entitlement enables shareholders to participate on an equitable basis as the company progresses to its next phase of growth.”
The company has provided the following time frames:
- Entitlement offer and offer booklet released to ASX (8 May)
- Rights trading commences on a deferred settlement basis (12 May)
- Record date for participation in the offer (13 May)
- Entitlement offer opens (18 May)
- Entitlements quoted on a normal settlement basis from market open (19 May)
- Entitlements trading ends at the close of trading (20 May)
- Entitlement offer closes (27 May)
- Shortfall notification letters sent to sub-underwriters (28 May)
- New shares settlement (2 June)
- Entitlement offer results (3 June)
- New shares allotment (3 June)
- New shares quotation (5 June)
Tanami Gold is a gold explorer and producer with assets mainly in the Northern Territory.
Write to Richard Szabo at Mining.com.au
