Buru’s Rafael Gas Project Funding Hinges on Shareholder Approval and Partner Deals
Buru Energy has successfully raised $2.1 million through a share placement and launched a $3 million Share Purchase Plan to advance its Rafael Gas Project, targeting a Final Investment Decision by late 2026 and first cash flow by early 2028.
- Completed $2.1 million share placement at 2.0 cents per share
- Launched $3 million Share Purchase Plan for existing shareholders
- Placement and SPP shares come with attaching options subject to shareholder approval
- Funds to support key development activities under Strategic Development Agreement with CEFA
- Targeting Final Investment Decision in second half of 2026 and potential cash flow by early 2028
Capital Raising to Accelerate Rafael Gas Project
Buru Energy Limited has taken a significant step forward in funding the commercialisation of its Rafael Gas Project by completing a $2.1 million share placement and launching a Share Purchase Plan (SPP) aimed at raising an additional $3 million. The placement was directed at sophisticated and professional investors, while the SPP offers existing shareholders the chance to participate on the same terms, reflecting Buru’s commitment to inclusive shareholder engagement.
The shares under the placement were priced at 2.0 cents each, representing a discount of approximately 17% to recent trading prices, with attaching options offered on a one-for-two basis. These options, exercisable at 3.0 cents and expiring in two years, are subject to shareholder approval at an upcoming Extraordinary General Meeting.
Strategic Development Agreement and Project Milestones
The funds raised will underpin critical activities outlined in Buru’s Strategic Development Agreement with Clean Energy Fuels Australia (CEFA). These include securing an upstream development partner to finance the 2026 appraisal program, finalising detailed designs, obtaining regulatory and traditional owner approvals, and advancing joint marketing efforts for gas and condensate.
CEO Thomas Nador emphasised that the capital raising is a vital enabler for Buru’s strategy to generate near-term foundational cash flows from the Rafael Gas Project, which is 100% owned and operated by the company. The targeted timeline aims for a Final Investment Decision in the second half of 2026, with potential first cash flow expected by early 2028.
Shareholder Participation and Future Outlook
The SPP opens on 8 September 2025 and allows shareholders with registered addresses in Australia or New Zealand to apply for shares up to $30,000 at the placement price. The company reserves the right to scale back applications if oversubscribed. Participants in the SPP will also be eligible for attaching options on the same terms as the placement, pending shareholder approval.
With Wilsons Advisory and Evolution Capital acting as joint lead managers, Buru is positioning itself to maintain momentum on the Rafael Gas Project while also supporting related opportunities such as the Mars oil prospect and potential production restart at the Ungani Oilfield.
Investors and analysts will be watching closely as Buru navigates the upcoming shareholder meetings and the critical path toward binding agreements with CEFA and the Final Investment Decision. The company’s ability to secure an upstream partner and meet regulatory milestones will be key determinants of its near-term success.
Bottom Line?
Buru’s latest capital raise sets the stage for pivotal developments in the Rafael Gas Project, but shareholder approval and partner commitments remain crucial next steps.
Questions in the middle?
- Will shareholders approve the attaching options at the upcoming Extraordinary General Meeting?
- How quickly can Buru secure an upstream development partner to fund the 2026 appraisal program?
- What impact will the SPP subscription levels have on Buru’s funding and project timelines?
