Tamboran Resources Ltd (ASX:TBN, OTC:TBNRF) has today opened a share purchase plan (SPP) with the aim of raising up to A$5 million as part of a capital raising initiative to raise around A$71.4 million to expedite the development of gas projects in the Beetaloo Basin in the Northern Territory.
The SPP provides eligible shareholders with the opportunity to apply for up to A$30,000 worth of shares at A$0.18, the same issue price as the placement announced on June 27, 2023.
READ: Tamboran Resources has commitments for institutional component of $71.4 million raise to accelerate Beetaloo development
Tamboran intends to raise up to A$5 million under the SPP and reserves the right to increase the size of the SPP at its discretion. The SPP may also be subject to a scale-back of applications at the absolute discretion of the company.
Shares to be issued under the SPP will rank pari passu with existing shares on issue.
The SPP opens today and is expected to close at 5.00pm (Sydney time) on Thursday, July 27, 2023, unless extended.
SPP timetable.
Part of capital raising
This SPP is a component of the company’s A$71.4 million capital raising.
Binding commitments have been received from new and existing shareholders for a A$53.2 million non-underwritten placement, underscoring investor confidence in Tamboran’s growth prospects.
In addition, Tamboran has signed a binding Heads of Agreement (HOA) with US-based Helmerich & Payne for a 5-year convertible note worth US$9 million, subject to shareholders' approval.
Use of funds
Capital raising funds will provide Tamboran with the necessary resources to accelerate drilling activities in the Beetaloo Basin as well as fulfil the farm-in commitments relating to the Origin transaction in 2022 for a 38.75% interest in EPs 76, 98 and 117.
Additionally, they will enable the company to book initial 2C gas resources over the Shenandoah South area, marking a significant milestone in its growth trajectory.
They will allow Tamboran to undertake clean-up activities at the Amungee 2H as well as begin drilling operations at the Shenandoah South 1H and Amungee 3H wells in EP 117 and 98, respectively.
“Closer to commercialisation”
Tamboran Resources managing director and CEO Joel Riddle said: “Tamboran’s $71.4 million capital raise brings the company one step closer to commercialisation of our acreage in the Beetaloo Basin and funds several key milestones that are expected to unlock this vast, low reservoir CO2 gas resource.
“We are fully focused on delivering commercial flow rates from the Shenandoah South and Amungee areas.
"De-risking of these two areas provides us with optionality for initial production via mini-LNG, as early as 2024, and the proposed pilot development, targeting first production by the end of 2025.”