Tamboran Resources Ltd (ASX:TBN) has boosted its war chest for the Beetaloo Sub-basin gas assets in the Northern Territory by A$137 million after completing an equity raise.
This raise to new and existing shareholders comprised a two-tranche placement and a share purchase plan (SPP).
Two tranches
The company issued 652,452,288 shares at A$0.21 per share in two tranches:
- Tranche 1 - the issue of 186,839,878 new fully paid ordinary shares to institutional, sophisticated and professional investors representing 25% of Tamboran's pre-raise issued capital. This raised approximately A$39.2 million and was issued using Tamboran's existing placement capacity under ASX Listing Rules 7.1 and 7.1A.
- Tranche 2 – comprising the issue of 465,612,410 new fully paid ordinary shares to Tamboran's investors to raise approximately A$97.8 million.
Cornerstone investors
Of significance to Tamboran was the institutional component of the equity raise that included a $98 million private placement of shares to strategic partners and US cornerstone investors, supported by investments of $30 million by Sheffield and $22 million by Helmerich and Payne (H&P).
The SPP followed the placement and provided eligible shareholders with the opportunity to apply for up to $30,000 worth of new shares.
Tamboran received applications from eligible shareholders totalling A$3,401,800 with 16,198,945 new fully paid ordinary shares issued under the SPP on Thursday, October 20, 2022, and began trading on the ASX on Friday, October 21, 2022.
Use of funds
Funds raised will be used to fund an acquisition by the company of an interest in and operatorship of natural gas assets in the Beetaloo Sub-basin, the company’s ongoing exploration and development programs in the Beetaloo Sub-basin, for general working capital purposes and for costs of the equity raising.
All conditions precedent have been satisfied in respect of the acquisition of Origin’s Beetaloo assets including Ministerial Approval and the company is looking forward to completion occurring in due course.