Tanami Gold NL (ASX: TAM), an emerging gold development and exploration company with a 50% interest in the highly prospective Central Tanami Project, encompassing approximately 2,110 km² in the proven Tanami Region of the Northern Territory, has announced a fully underwritten renounceable rights issue. The company aims to raise up to approximately $70.5 million before costs through the offer of one new fully paid ordinary share for every one share held, at an issue price of $0.06 per share. This represents a significant discount of 34.78% to the last trading price of $0.092 on May 5, 2026, and 35.55% to the 15-day volume-weighted average price.
The substantial funds are earmarked primarily for advancing Tanami’s 50% capital contribution to the Central Tanami Project Joint Venture (CTPJV), a 50:50 partnership with ASX-listed MGX Resources Limited. Key allocations include funding a two-year decline development program for the Groundrush Gold Mine, facilitating underground resource definition drilling and early ore access. Additionally, proceeds will support surface resource definition drilling, central camp upgrades, non-processing infrastructure improvements, and provide essential working capital. Notably, Macmahon Holdings Limited was recently appointed to undertake the Groundrush exploration decline development.
The entitlement offer is jointly managed by Bell Potter Securities Limited and Evolution Capital Pty Ltd, with Bell Potter also acting as the underwriter, ensuring the offer is fully backed. Eligible Shareholders on the record date of May 13, 2026 (7:00pm Sydney time) will have the opportunity to participate. The offer officially opens on May 18, 2026, with rights trading commencing on May 12, 2026, and closing on May 20, 2026. Applications for new shares must be received by 5:00pm Sydney time on May 27, 2026, with new shares expected to commence trading on the ASX on June 4, 2026. Shareholders who do not take up their entitlements, or are ineligible, face a potential dilution of up to 50% of their holdings.
