Macallum New Energy has locked in an approximately A$3 million placement to fund EP 494 farm-out work, technical studies and preparations for potential drilling in late 2027. Most of the raising can proceed under existing placement capacity, while director participation and broker options require shareholder approval.
- Approximately A$3 million raised at A$0.14 per share
- 21.46 million new shares to be issued in two tranches
- Funds directed to EP 494 and EP 511 exploration and farm-out work
- Potential drilling remains targeted for the second half of 2027
- Directors have subscribed for A$102,000, subject to shareholder approval
A$3 Million Placement Targets Perth Basin Work
Macallum New Energy Limited (ASX:MNE) has secured firm commitments for an approximately A$3 million placement, giving the Perth Basin explorer fresh capital to advance its EP 494 farm-out process and prepare for potential exploration drilling in the second half of 2027.
The raising will issue approximately 21.46 million fully paid ordinary shares at A$0.14 each. That price represents a 12.5% discount to MNE’s last closing price and discounts of between 20.6% and 23.1% to the company’s five-, 15- and 30-day VWAPs. The placement is not underwritten.
The capital arrives as MNE moves from seismic interpretation and resource definition towards partner discussions and well planning. The company said the funds would also support geological studies, procurement of long-lead items, commercialisation assessments and general working capital.
Farm-Out Process Moves Towards 2027 Drilling Decision
Most of the placement, comprising 20,598,502 shares and approximately A$2.88 million, will be issued under MNE’s existing ASX Listing Rule 7.1 capacity. A further 860,072 shares, raising about A$120,000, will require shareholder approval, including A$102,000 of director subscriptions.
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Bottom Line?
The placement funds the next technical and commercial steps, but the investment case still turns on securing an EP 494 partner and converting unrisked prospects into a funded drilling programme.
Questions in the middle?
- Will MNE secure a farm-in partner willing to help fund up to two EP 494 exploration wells?
- Will shareholders approve the second placement tranche, director participation and broker options at the 26 November AGM?
- Can the company reach its Q1 2027 well-selection and investment-decision target while retaining sufficient funding flexibility?