Tanami Gold Faces Subscription Uncertainty in $70.5 Million Rights Issue for Central Tanami

Capital Raise Targets Central Tanami Project Funding

Tanami Gold NL (ASX:TAM) has officially opened its fully underwritten pro-rata renounceable entitlement offer, seeking to raise approximately $70.5 million at an issue price of 6 cents per share. The capital raising is designed primarily to fund the company’s 50% capital contribution to the Central Tanami Project, a significant joint venture with MGX Resources focused on exploration and development activities. This follows the initial announcement of the offer on 8 May 2026 and sets a clear path for advancing the project’s next phase.

The offer is structured as a 1-for-1 rights issue, allowing eligible shareholders to subscribe for one new share for every share they hold as of the 13 May 2026 record date. The rights are renounceable, meaning shareholders can sell their entitlements on the ASX between 12 and 20 May 2026 if they choose not to participate fully. This flexibility is intended to accommodate varying investor preferences amid the capital raise.

Jurisdictional Restrictions Narrow Shareholder Participation

Tanami Gold has excluded shareholders registered outside Australia, New Zealand, Hong Kong, Mauritius, the British Virgin Islands, Taiwan, the European Union (excluding Austria and France), and Singapore from participating due to regulatory complexities and cost considerations. This decision aligns with ASX Listing Rule 7.7.1(a) and the Corporations Act, reflecting a common approach in cross-border equity offers. Eligible shareholders in the approved jurisdictions have been sent personalised offer booklets and entitlement forms to facilitate their participation.

The company estimates that approximately 1.175 billion new shares will be issued under the offer, subject to shareholder take-up. Bell Potter Securities Limited is the sole underwriter, with Bell Potter and Evolution Capital Pty Ltd jointly managing the offer. This underwriting commitment provides certainty of funding, a critical factor given the scale of the intended exploration and development expenditure at Central Tanami.

Timetable Sets Key Dates Through Early June

The entitlement offer opened on 18 May 2026 and is scheduled to close on 27 May 2026 at 5:00pm Sydney time. Entitlements trade on the ASX on a deferred settlement basis from 12 May and on a normal settlement basis from 19 May, with trading ceasing on 20 May. The results of the offer will be announced on 3 June, with new shares expected to be issued and commence trading on 4 June 2026.

Shareholders have multiple options: take up all or part of their entitlement, sell some or all of their entitlements on-market or privately, or allow entitlements to lapse. The offer document provides detailed instructions, and shareholders are encouraged to consult financial advisers before deciding.

Funding to Support Groundrush Decline and Resource Drilling

The funds raised will underpin Tanami Gold’s contribution to the Central Tanami Project, including the construction of the Groundrush underground decline and ongoing resource drilling. This follows recent contract awards and resource upgrades that have bolstered the project’s development timeline and resource base. The capital raise is a critical step in ensuring the company can meet its joint venture obligations and maintain momentum toward production.

The $0.06 issue price represents a significant discount to recent trading prices, reflecting the dilutive nature of the capital raise and the need to attract shareholder participation. This discount and the fully underwritten nature of the offer provide a measure of price support during the offer period. The renounceable rights structure also allows shareholders to mitigate dilution by selling entitlements if they choose not to subscribe.

Tanami Gold’s move to raise capital through a rights issue is consistent with its strategic focus on advancing the Central Tanami Project, which holds a 2.8 million ounce gold resource across multiple deposits. The company’s ability to secure funding and progress infrastructure development will be key to unlocking value for shareholders.

Investors will be watching closely as the offer progresses toward the 27 May close and the subsequent announcement of results on 3 June. The uptake of the entitlement offer will provide insights into shareholder confidence and the company’s financial flexibility as it moves into a pivotal stage of project development. Tanami’s next steps post-capital raise, including updates on construction timelines and exploration results, will be critical indicators of its trajectory.

Meanwhile, the company continues to manage shareholder communications and regulatory compliance, ensuring transparency throughout the capital raising process. The exclusion of certain international shareholders, while standard for offers of this nature, may influence overall subscription levels and market perception.

Tanami Gold’s capital raise is a defining moment in its 2026 agenda, setting the stage for what could be a transformative period for the Central Tanami Project and the company’s broader growth ambitions.

Shareholders and market participants can review the offer document and track developments as the timetable unfolds, with the critical dates between now and early June shaping the immediate outlook for Tanami Gold.

For additional context on the rights issue pricing and project funding strategy, see the company’s initial announcement on 8 May 2026 detailing the $70.5M rights issue pricing. The capital raise directly supports recent operational moves such as the Macmahon Groundrush contract award, underscoring the link between financing and project execution.