TMK Energy Limited (ASX: TMK), an ASX-listed company focused on gas production, has announced that it has received binding commitments to raise $6.0 million (before costs) through a heavily oversubscribed placement. TMK Energy is focused on developing its Gurvantes XXXV Coal Seam Gas Project located in Mongolia. The placement attracted cornerstone investment from CSG industry professionals, as well as interest from emerging market and institutional funds both offshore and domestically, alongside strong support from existing sophisticated and high net worth investors.
The placement will see TMK issue 50,000,000 new fully paid ordinary shares at $0.12 per share, representing a 17.2% discount to the last closing price of $0.145 and a 7.1% discount to the fifteen-day volume weighted average price (VWAP). These new shares will rank equally with existing shares. An additional $80,000 participation from the Board remains subject to shareholder approval at the Company’s upcoming AGM in late May.
According to TMK Energy, the proceeds from the placement will be used to accelerate gas production through drilling up to three additional pilot production wells. This is in addition to commercialisation initiatives for the Gurvantes XXXV Coal Seam Gas Project. The company aims to achieve sustainable commercial gas flow rates and book its first reserves for the project.
TMK Energy’s Chief Executive Officer, Dougal Ferguson, commented that the oversubscribed placement is a clear endorsement of the progress made and growing confidence in the Gurvantes XXXV CSG Project. Bridge Street Capital Partners acted as lead manager and sole book runner for the placement and will receive a management fee of 2% and a selling fee of 4% of the total funds raised, excluding funds from Board, Management, and certain participants introduced directly by the Company.
