Tanami Gold has secured $70.5 million through a fully underwritten rights issue to fund its Central Tanami Project development, including a major underground decline and resumed drilling at Jims Gold Mine.
- Completed $70.5M fully underwritten rights issue
- Macmahon appointed for $38M Groundrush underground decline
- 2,184 metres drilled at Jims Gold Mine in June quarter
- Cash reserves stand at $75.9M with $9.5M in Northern Star shares
- Preliminary talks ongoing for Hyperion joint venture with Prodigy Gold
Capital Raise Fuels Central Tanami Project Development
Tanami Gold NL (ASX:TAM) has bolstered its war chest with a fully underwritten rights issue that raised $70.5 million before costs. The fresh capital is earmarked primarily for the 50% share of the Central Tanami Project (CTP) joint venture development, including a $37.2 million underground exploration decline at the Groundrush Gold Mine. The rights issue closed on 3 June 2026, with major shareholders APAC Resources and Metals X fully participating.
Groundrush Decline Construction Set to Begin
Macmahon Underground Pty Ltd, a subsidiary of Macmahon Holdings Limited, has been selected as the preferred contractor for the $38 million Groundrush exploration decline. This 3,500-metre underground development is critical for advancing resource infill drilling and early ore access. Site works are slated to start in August 2026, with portal development targeted for September, and construction expected to span 14 months. The decline will reach approximately 350 metres below surface, enabling drilling to a vertical depth of around 600 metres.
Drilling Resumes at Jims Gold Mine
Resource definition drilling recommenced at Jims Gold Mine during the quarter, with 2,184 metres drilled across 16 reverse circulation holes. This campaign is part of a broader program designed to convert inferred resources to indicated status, supporting future mine planning. Results from this drilling are pending and will be released once available. The drilling program is substantial, with planned phases totalling over 24,000 metres of RC and diamond core drilling combined.
Operational Progress and Financial Position
Alongside development activities, Tanami has upgraded site infrastructure, including camp refurbishment and utility enhancements, while recruiting key personnel to support the project ramp-up. The company reported cash reserves of $75.943 million at quarter end, excluding $9.001 million held within the CTP joint venture. Additionally, Tanami holds 500,000 shares in Northern Star Resources valued at $9.475 million. The quarterly cash flow statement shows net cash used in operating activities of $2.227 million, reflecting ongoing exploration and maintenance costs.
Potential Expansion with Prodigy Gold
Tanami continues preliminary discussions with Prodigy Gold NL (ASX:PRX) regarding a potential joint venture on the Hyperion Gold Project. While no binding agreement has been reached, this could extend Tanami’s footprint in the Northern Territory if successful. The company remains engaged with Traditional Owners and stakeholders, signalling a commitment to responsible development as the CTP advances.
Bottom Line?
Tanami’s sizeable capital raise and contract award mark a decisive step towards unlocking value at Central Tanami, but drilling results and joint venture negotiations will be key milestones to watch.
Questions in the middle?
- Will drilling results at Jims Gold Mine confirm resource upgrades to support mine planning?
- How will Macmahon’s execution of the Groundrush decline impact project timelines and costs?
- What strategic benefits or risks could arise from a joint venture with Prodigy Gold on Hyperion?