Tambourah Metals has successfully completed an oversubscribed entitlement offer, raising $367,720 to fund drilling and exploration across its gold and critical minerals projects in Western Australia.
- Oversubscribed 1-for-8 entitlement offer at $0.02 per share
- Raised approximately $367,720 after scale back
- Issued 18.4 million new shares plus free attaching options
- Funds allocated to drilling at Tambourah, Beatty Park, Speewah North, and other projects
- Total shares on issue now 165.5 million
Oversubscribed Equity Raise Signals Investor Confidence
Tambourah Metals Ltd (ASX – TMB) has closed its recent 1-for-8 pro-rata non-renounceable entitlement offer, which was oversubscribed by shareholders eager to back the company’s exploration ambitions. The offer, priced at a modest 2 cents per share, attracted applications for over 20.8 million shares, exceeding the 18.9 million shares on offer and resulting in a scale back of approximately 2.5 million shares.
Following the scale back, Tambourah will issue just over 18.3 million new shares, raising $367,720 in fresh equity. Eligible shareholders also received free attaching options exercisable at 4 cents each, valid until July 2027, providing potential upside if the company’s exploration efforts bear fruit.
Funding Exploration Across Multiple Projects
The capital raised will be deployed across Tambourah’s portfolio of gold and critical mineral projects in Western Australia. Key allocations include drilling programs at the Tambourah Gold Project and follow-up drilling at the Beatty Park Gold Project. The company also plans to advance drill target generation at Speewah North and continue exploration at other projects within its portfolio, including those in the Pilbara and Bryah regions.
These activities underscore Tambourah’s strategic focus on expanding its resource base and enhancing project value. The fresh funds will also support general working capital needs, ensuring operational flexibility as exploration progresses.
Shareholder Base and Market Implications
With the allotment of new shares and options, Tambourah’s total ordinary shares on issue will rise to approximately 165.5 million. The oversubscription reflects solid shareholder appetite for the company’s growth story, despite the modest size of the raise. The attaching options offer an incentive for investors to maintain exposure, potentially benefiting from any positive exploration results over the next two years.
Executive Chairperson Rita Brooks highlighted the importance of this capital injection in advancing Tambourah’s exploration agenda and positioning the company for future value creation. As drilling programs ramp up, market participants will be keenly watching for assay results and any indications of resource expansion.
Bottom Line?
Tambourah’s successful raise sets the stage for intensified exploration, but investors will be watching closely for tangible results to justify the dilution.
Questions in the middle?
- What initial results will the upcoming drilling programs deliver at Tambourah and Beatty Park?
- How might the exercise of attaching options impact the company’s capital structure and share price?
- What is the timeline for advancing Speewah North from target generation to drilling?