Buru Energy Ltd (ASX:BRU, OTC:BRNGF) has secured $2.1 million from a share placement and is opening a share purchase plan (SPP) to raise a further $3 million, with proceeds earmarked to advance its 100%-owned Rafael Gas Project in Western Australia.
The placement, directed to sophisticated and professional investors, was struck at 2 cents per share — a 16.7% discount to Buru’s August 27 closing price — with each new share to carry one free attaching option for every two shares, exercisable at 3 cents over two years. The options are subject to shareholder approval at a forthcoming extraordinary general meeting.
The SPP, opening on September 8, will allow eligible shareholders to acquire up to $30,000 of new shares at the same price. Participants will also receive the attaching options on the same terms, again subject to shareholder approval.
Funds to drive Rafael commercialisation
The raising will supplement Buru’s existing cash reserves and maintain momentum on Rafael’s development, where a final investment decision (FID) is targeted for the second half of 2026 and first cash flow is expected by early 2028.
Rafael Gas Project Schedule.
Proceeds will support Buru’s responsibilities under its Strategic Development Agreement with Clean Energy Fuels Australia (CEFA), including securing an upstream development partner to fund next year’s appraisal program. Other planned activities include:
- finalising the detailed design for the 2026 appraisal program,
- advancing Traditional Owner agreements,
- progressing regulatory approvals,
- joint marketing of gas and condensate with CEFA, and
- supporting a farm-out of the Mars oil prospect, which could also underpin a restart at the Ungani Oilfield.
Growth vision for Rafael
Buru CEO Thomas Nador said the placement demonstrated strong backing for the company’s growth strategy.
“The support of our shareholders and new investors for this capital raising enables our strategy to develop our 100%-owned and -operated Rafael Gas Project,” Nador said.
“By prioritising all company efforts toward this goal, we are targeting material near-term foundation cash flows from which to build our next phase of growth and deliver long-term success and shareholder value,” he added. “We are pleased to provide our wider shareholder base with the opportunity to continue to participate in our journey through the SPP and look forward to their continued support.”
Timeline and next steps
The 105 million placement shares are expected to be issued on September 5 under Buru’s existing placement capacity. SPP documentation will be released to shareholders on September 8, with the offer closing on September 30 and results to be announced on October 3.
Wilsons Advisory and Evolution Capital acted as joint lead managers for the placement.
Buru will also hold an investor webinar on September 4, providing an update on Rafael and an opportunity for shareholder questions. Registration details will be announced on Tuesday.