1-for-4 offer seeks $2.203 million for Tambourah exploration

$2.2 Million Raise Targets Western Australian Exploration

Tambourah Metals Ltd (ASX:TMB) is asking shareholders for up to $2.203 million to keep drilling across its Western Australian gold and critical minerals portfolio, offering one new share for every four held at $0.035. Investors who participate will also receive one free unquoted option for every two new shares, with each option exercisable at $0.06 for 18 months from issue.

The terms repeat the structure outlined in the company’s October entitlement offer, but the lodged prospectus puts the funding mechanics and risks on a more formal footing. If fully subscribed, Tambourah would issue up to 62.94 million new shares, lifting shares on issue from 251.75 million to 314.69 million, alongside 31.47 million new options. The options will not be quoted on ASX.

Exploration Gets Priority, But Working Capital Takes Most Funds

The proposed spending plan covers RC, diamond and aircore drilling at the Tambourah and Bryah projects, including Baxters South and Beatty Park South. Tambourah Gold is allocated $400,000 for further drilling aimed at an initial maiden resource and progress on mining leases, while $500,000 is earmarked for critical minerals work at Speewah North, Coondina and Eleys.

Working capital is the largest allocation at $4.413 million, or 61.7% of funds available after including existing cash. The company reported $4.95 million in cash at 30 June 2026 and, assuming a fully subscribed offer, estimates total available funds of $7.153 million before offer costs. After estimated offer expenses of $39,542, the pro forma cash figure is about $7.113 million.

Ununderwritten Offer Leaves Subscription Result Uncertain

The offer is not underwritten, meaning Tambourah has no stated commitment from an underwriter to fill any shortfall. Eligible shareholders can apply for additional securities through the Top-Up Offer, while any remaining shortfall may be placed with invited investors within three months of the closing date. Allocations are discretionary and there is no guarantee that excess or shortfall applications will be satisfied.

The issue price is above the latest market price cited in the prospectus, which was $0.03 on 13 October, although it sits within the recent three-month trading range of $0.029 to $0.042. Tambourah’s largest shareholder group, associated with executive chair Rita Brooks, held 16.40% at the prospectus date. The group had not confirmed whether it would take up its full entitlement, while Brooks indicated she would take up part of hers. All directors have indicated an intention to take up part of their entitlements.

Prospectus Highlights Continuing Funding Dependence

The sharper issue is not the exploration list but the company’s financial position behind it. Tambourah says it has no operating revenue and is unlikely to generate any until projects are successfully developed and production begins. The prospectus also states that the audited 30 June 2026 accounts were prepared on a going concern basis and that failure to obtain adequate funding could create material uncertainty over the company’s ability to continue operating.

The entitlement offer and Top-Up Offer are scheduled to close at 5.00pm AWST on 2 November 2026, with results expected on 9 November. The practical test will be whether shareholders fund the full exploration program at the stated price, or whether the company must scale back spending and return to the market sooner than planned.