Tennant Minerals Proposes 799 Million New Options with $0.013 Exercise Price

Major Options Issue to Remove Trading Restrictions

Tennant Minerals Limited (ASX:TMS) is set to issue a substantial volume of new options, totalling up to 799.7 million, as part of a trio of linked offers detailed in a prospectus lodged on 9 July 2026. The move follows a $2.8 million placement announced in May, which saw 430.8 million shares issued at $0.0065 each to professional investors. The new options will be issued free attaching to those placement shares, subject to shareholder approval obtained in July.

The company is offering one new option for every placement share subscribed, aiming to clear existing trading restrictions on these options and any shares issued upon their exercise. This step is intended to enable holders to trade the options on the ASX and facilitate the resale of shares issued on exercise without further disclosure documents.

Lead Manager and Options Placement Offers

In addition to the placement participants, Tennant Minerals will issue 68.9 million new options to GBA Capital, the lead manager for the placement, as part of their fee arrangement. These options are also subject to shareholder approval and will be issued at no cost.

Separately, the company is conducting an Options Placement Offer targeting non-related parties, with up to 300 million new options priced at $0.001 each. This component aims to raise up to $300,000 before costs, with proceeds earmarked for legal fees related to the prospectus and general working capital. The company reserves the right to issue further options under shareholder approval obtained at the general meeting, beyond this offer.

Financial Impact and Use of Funds

Upon completion of all offers, Tennant Minerals' total options on issue will balloon from approximately 360 million to over 1.15 billion. While the new options under the placement offers are issued at nil cost, the exercise price for all new options is set at $0.013 each, with expiry on 30 June 2030.

If all new options are exercised, the company stands to receive approximately $5.6 million from the placement offer options, $896,000 from the lead manager options, and $3.9 million from the options placement offer, significantly boosting cash reserves. The funds will primarily support drill-testing of the Bluebird discovery’s down-plunge extensions, further geological modelling within the Barkly and Babbler tenement areas, metallurgical testing, and processing studies under the Tennant Creek Alliance, alongside general working capital needs.

Rights, Risks, and Market Listing

The new options entitle holders to subscribe for one share each upon exercise, with shares ranking equally with existing shares. The company plans to apply for official quotation of the new options on the ASX, subject to meeting listing requirements. However, there is no guarantee that ASX will approve the quotation, and investors should note the speculative nature of the securities.

The prospectus comprehensively outlines risk factors ranging from exploration and development uncertainties, regulatory and environmental compliance, to market volatility and dilution risks. Importantly, the company is not currently involved in any litigation, and director interests and remuneration are disclosed transparently.

Capital Structure and Shareholder Impact

Currently, Tennant Minerals has 1.33 billion shares on issue, with no new shares offered under this prospectus. However, the ongoing placement will add up to 164 million shares pending shareholder approval. The total fully diluted capital, including all options post-offer, would reach nearly 2.5 billion shares.

Substantial shareholder Kalgoorlie Mine Management Pty Ltd holds a 13.47% stake, reflecting ongoing institutional interest. Investors should be mindful that the large increase in options could lead to dilution if exercised, depending on future share price performance and option holder decisions.