Whitebark’s King Energy Acquisition Hinges on Shareholder Approval Amid Capital Raise

Strategic Capital Raise to Accelerate Growth

Whitebark Energy Limited (ASX:WBE) has announced a firm commitment to raise A$2 million through a placement to institutional and high-net-worth investors. This capital injection is designed to underpin the company’s planned acquisition of King Energy, a move that significantly expands Whitebark’s footprint in the renewable energy sector, particularly in white hydrogen and helium exploration.

The placement involves the issue of over 307 million new shares at a price of A$0.0065 each, accompanied by one free attaching option for every two shares subscribed. These options, exercisable at A$0.015 and expiring in March 2027, offer investors additional upside potential as Whitebark advances its exploration activities.

Unlocking the Alinya Project’s Potential

King Energy currently holds a 70% interest in the Alinya Project, located in the Officer Basin of South Australia. This project is notable for its extensive seismically defined sub-salt structures, which are prospective for white hydrogen, helium, and conventional gas resources. Whitebark’s acquisition includes an option to acquire the remaining 30%, positioning the company to control one of Australia’s largest onshore exploration assets in this emerging energy space.

Chairman Mark Lindh highlighted the strategic importance of the acquisition, noting that it provides Whitebark with exposure to high-demand energy commodities that are critical to Australia’s energy transition. The Alinya Project’s combination of white hydrogen and helium resources aligns with global trends toward cleaner energy and supply chain diversification.

Funding Exploration and Development

The funds raised will be allocated to key exploration activities, including soil geochemistry surveys and 2D seismic work targeting the Rickerscote and Milford areas within the Alinya Project. These efforts aim to refine the understanding of subsurface geology and identify prime drilling targets.

Additionally, Whitebark intends to use the capital to progress farm-out discussions, which could bring in partners to share the financial and operational risks of exploration. Working capital and costs associated with the takeover offer are also covered by the placement proceeds.

Shareholder Engagement and Governance

The placement is structured in two tranches, with the first tranche to be issued under existing placement capacity and the second tranche subject to shareholder approval at an Extraordinary General Meeting scheduled for March 2025. This includes the conversion of approximately A$205,000 in related party debts into shares, which also requires shareholder consent.

Notably, Chairman Mark Lindh has committed to participate in the placement with a $100,000 subscription, signaling confidence in the company’s strategic direction. The involvement of joint lead managers Peak Asset Management and AE Advisors further underscores institutional support for Whitebark’s growth plans.

Positioning for the Energy Transition

Whitebark Energy’s pivot towards renewable energy and low-carbon resources reflects a broader industry shift. By acquiring King Energy and focusing on white hydrogen and helium, the company is aligning itself with sectors expected to experience robust demand as Australia and the world seek cleaner energy alternatives.

While the success of the capital raise and acquisition depends on shareholder approval, the firm commitments received so far suggest strong market endorsement. The next few months will be critical as Whitebark moves to complete the acquisition and advance its exploration agenda.