How Will Tennant Minerals Deploy $550K to Unlock Barkly’s Potential?
Tennant Minerals has secured $550,000 through a share placement to fund exploration and development at its Barkly copper-gold project, including the promising Bluebird discovery.
- Placement of 110 million shares at $0.005 each
- Raised $550,000 before costs
- Issued 55 million unlisted options to investors and 33 million broker options
- Funds allocated to Barkly project exploration and metallurgical studies
- Broker GBA Capital received 6% fee plus options
Capital Raising Details
Tennant Minerals Limited (ASX: TMS) has successfully completed a capital raising, securing $550,000 through a placement of 110 million fully paid ordinary shares priced at $0.005 each. The placement was conducted under the company’s existing capacity rules, allowing for a swift and efficient transaction without the need for shareholder approval.
Alongside the shares, Tennant issued 55 million unlisted options to investors at an exercise price of $0.01, expiring on 31 December 2028. Additionally, the broker, GBA Capital, received 33 million options exercisable on the same terms, as well as a 6% fee on the total proceeds raised.
Strategic Use of Funds
The funds raised will be directed towards advancing exploration activities at Tennant’s 100% owned Barkly copper-gold project in the Northern Territory. This includes further work on the high-grade Bluebird copper-gold discovery, which has been a focal point for the company’s recent exploration efforts.
Beyond exploration, the capital will support metallurgical test-work programs and initial development and processing studies. These steps are critical in assessing the project's viability and preparing for potential future production phases. General working capital needs will also be met, ensuring operational stability.
Capital Structure and Market Implications
Following the placement, Tennant’s total shares on issue will increase to approximately 1.07 billion, with total options rising to over 445 million. While this dilution is notable, the injection of funds provides the company with the necessary resources to progress its projects without immediate reliance on debt or more costly capital.
The relatively low exercise price of the new options could incentivize investors to participate in the company’s upside if exploration results continue to be positive. However, the market will be watching closely for tangible progress at Barkly to justify the expanded capital base.
Looking Ahead
Tennant’s management, led by CEO Vincent Algar and CFO Tanya Newby, has positioned the company to capitalize on its promising copper-gold assets. The success of this capital raising reflects confidence from investors and brokers alike, but the real test will be the forthcoming exploration results and development milestones.
Bottom Line?
Tennant’s fresh capital sets the stage for critical exploration milestones that could redefine its value proposition.
Questions in the middle?
- What are the expected timelines for exploration results at the Barkly project?
- How likely are the new options to be exercised given current market conditions?
- What are the next key development milestones following metallurgical test-work?
