Tamboran Resources Corporation (OTC:TBNRF, ASX:TBN) has taken recent capital raising proceeds to A$55 million after completing the retail component of its accelerated non-renounceable pro rata entitlement offer on a 1 for 6.2 basis for $14.2 million.
The Retail Entitlement Offer at an offer price of $0.16 per new CHESS Depository Interest (CDI) closed at 5:00pm (Sydney time) on Wednesday, January 10, 2024.
Well supported
It was well supported by Tamboran’s eligible retail security holders who elected to take up their entitlements and those who applied for additional CDIs in excess of their entitlement.
The retail offer follows the completion of an institutional placement and the institutional component of the entitlement offer which raised $40.8 million.
The placement and institutional offer was made to new and existing institutional investors and included a A$15 million investment by Liberty Energy and Tamboran’s largest security holder, Bryan Sheffield, who participated for his full pro-rata entitlement of A$8 million.
Use of funds
Funds from the equity raise will support Tamboran’s Beetaloo Basin activities to the sanctioning of its proposed 40 MMcf/d Shenandoah South Pilot Project, which is planned for the first half of this year.
This includes the purchase of long lead items to maintain the project timeline and FEED activities.
About 907 valid applications for retail entitlements were received from eligible retail security holders for approximately 88.7 million new CDIs. This included applications accepted under the oversubscription facility for approximately 17.9 million new CDIs.
The new CDIs to be issued under the retail offer are expected to be allotted on Tuesday, January 16, 2024, and begin trading on the ASX on Wednesday, January 17, 2024. They will rank equally with existing CDIs.
Holding statements for these new CDIs are expected to be dispatched on Thursday, January 18, 2024.
The company currently has 2,060,287,200 CDIs on issue.