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- TMK Energy (TMK) launches a $5.7 million placement to fund the expansion and acceleration of its Gurvantes XXXV exploration drilling program in Mongolia
- Under the placement, TMK plans to issue over 393 million new ordinary shares at 1.45 cents per share to private investors
- Placement participants will also be issued free attaching options on a one-for-two basis with a strike price of 2.5 cents, expiring on April 30, 2026
- The placement was strongly supported by members of the company’s board, with subscriptions of up to 5.5 million new shares, subject to shareholder approval
- TMK shares are down 5.56 per cent and trading at 1.7 cents at 12:58 pm AEST
TMK Energy (TMK) has launched a $5.7 million placement to fund the expansion and acceleration of its Gurvantes XXXV exploration drilling program in Mongolia.
Under the placement, TMK plans to issue over 393 million new ordinary shares at 1.45 cents per share to private investors.
Placement participants will also be issued a free attaching option on a one-for-two basis with a strike price of $0.025, to expire on April 30, 2026.
The company said the placement was strongly supported by new and existing sophisticated investors and included members of the company’s board who have subscribed for up to 5.5 million new shares.
Board member shares will be subject to shareholder approval at TMK’s forthcoming Annual General Meeting on May 31.
The proceeds from the placement will fund the expansion and acceleration of the company’s Gurvantes coal seam gas project.
“The additional funding will allow the company to embark on its planned 2023 expanded exploration drilling program,” TMK CEO Brendan Stats said.
“The 2023 exploration program will target areas with known coal to the east of the
central Nariin Sukhait area, which was the focus of the company’s highly successful initial exploration drilling program in 2022 and which delivered a gross 1.2 TCF contingent resource (2C) for the project.”
The placement price represents a 19.4 per cent discount to the last traded price of TMK shares on April 17.
The company’s three largest shareholders have communicated their support of the capital raising as well as TMK’s future prospects.
TMK shares were down 5.56 per cent and trading at 1.7 cents at 12:58 pm AEST.
