RBR funds first Rovuma delivery as Mozambique LNG work resumes

A$600,000 bridge to Rovuma delivery

RBR Group Limited (ASX:RBR) has bought itself time to execute its first Mozambique LNG contract since the force majeure period, raising A$600,000 while reshaping A$1.25 million of convertible notes that had threatened to crowd out the business. The placement gives the company funding for the early stages of a c.US$2 million share of a joint Rovuma LNG camp award, although the filing makes clear that further capital may still be required.

The placement will issue 33.33 million shares at A$0.018 each, a price equal to the last closing price before the trading halt and a 4.3% discount to the 15-day VWAP. Grounded Group founder Paul Natoli has committed A$150,000, providing a cornerstone investment from a strategic backer that RBR says will also support its Australian corporate ambitions. The financing follows the trading suspension over fundraising, which had been imposed while the capital raising and note agreements were finalised.

Convertible notes pushed beyond the immediate deadline

All of RBR’s A$1.25 million face-value convertible notes have now been dealt with. Notes worth A$1 million will mature 12 months later, on 26 September 2027, while A$175,000 of another parcel will be extended by six months to 15 March 2027. The remaining A$50,000 will be repaid in cash and A$25,000 will be settled through the issue of 1.39 million shares.

Noteholders will also receive A$39,375 in rollover fees through a further 2.19 million shares, while accrued interest will be paid from the placement proceeds. Including the settlement and fee shares, the transaction will create roughly 36.9 million new shares before any shares that may later be issued to the lead manager. MST Financial Services is entitled to fees in cash or shares, and shareholder approval will be required for proposed shares in lieu of fees and for 7 million unquoted options.

Stage 1 contract moves from award to execution

RBR’s immediate operational test is the Stage 1 Rovuma LNG camp contract. Its 50%-owned Projectos Dinâmicos joint venture is building 32 accommodation modules and ablutions for a Bonatti and Mota-Engil consortium, with delivery due in late January 2027. The company says the first modules are already under construction in South Africa and that logistics to site are under way.

The award is the first LNG-project contract secured by RBR since force majeure was lifted and follows the Rovuma LNG contract award, which was reported alongside concerns over the company’s limited cash resources and overdue notes. RBR says delivery within scope, on time and on budget would materially improve the prospects of further work on the planned c.700-person camp. Later stages have not been awarded, however, and the company’s c.US$180 million tender book represents total tender values rather than RBR’s attributable share.

Board transition adds a second moving part

The funding announcement also sets out a leadership change. Laurie Ziatas, a lawyer with more than 45 years of corporate, commercial and mining experience, has been nominated to become chair subject to election at the 27 November annual general meeting. Executive chairman Ian Macpherson intends to move to a non-executive role before retiring, remaining through Christmas to assist with the transition and the appointment of another director.

The placement allocates A$150,000 to current creditors, A$90,000 to convertible-note interest and partial repayment, A$150,000 to the Rovuma contract and A$210,000 to working capital and placement costs. RBR’s presentation says its audited 2026 accounts contain a material uncertainty regarding going concern and warns that further funding could be needed if contract payments or tender awards do not arrive as expected. That makes the January delivery milestone more than an operational checkpoint: it is the first practical test of whether the new capital structure can carry the company from promise to cash generation.