Buru Energy Issues 116.7M Shares, Raises $2.35M for Gas Project
Buru Energy has raised $2.35 million through a Share Purchase Plan and shortfall placement, bolstering funding for its Rafael Gas Project in Western Australia.
- 69.2 million new shares issued via Share Purchase Plan
- Additional 47.5 million shares placed to sophisticated investor
- Total capital raised approximately $2.35 million before costs
- Funds earmarked for Rafael Gas Project development with CEFA
- Final Investment Decision targeted for second half of 2026
Capital Raise Completion
Buru Energy Limited (ASX, BRU) has successfully completed its recent Share Purchase Plan (SPP), issuing 69.2 million new ordinary shares and raising approximately $1.4 million. In addition, the company placed a shortfall of 47.5 million shares to a sophisticated investor, securing a further $0.95 million. Combined, these efforts have generated around $2.35 million before costs, providing a meaningful boost to the company's funding position.
Strategic Use of Funds
The capital raised is designated to support Buru’s ongoing activities under its Strategic Development Agreement with Clean Energy Fuels Australia (CEFA). These activities focus on advancing the Rafael Gas Project, a key initiative aimed at delivering reliable energy to Western Australia's northwest region. The company is preparing for a Final Investment Decision (FID) planned for the second half of 2026, with the goal of generating initial cash flows by 2028.
Shareholder Participation and Incentives
Eligible shareholders were invited to participate in the SPP, with the option to acquire up to $30,000 worth of shares at an issue price of 2 cents each, free of brokerage fees. Those who subscribed to both the SPP and the shortfall placement may be offered attaching options, exercisable at 3 cents within two years, subject to shareholder approval. This incentive aims to further align shareholder interests with the company’s growth prospects.
Outlook and Market Implications
CEO Thomas Nador expressed satisfaction with shareholder support and highlighted the importance of the funds in reducing project risk and enhancing certainty around the Rafael Gas Project. The project is positioned to have a significant impact on the regional energy landscape by ensuring safe and reliable gas supply. Investors will be watching closely as Buru progresses toward its FID milestone and subsequent development phases.
Bottom Line?
Buru Energy’s latest capital raise sets the stage for critical progress on the Rafael Gas Project, with market eyes on upcoming investment decisions.
Questions in the middle?
- Will shareholder approval for attaching options be secured, and how might this affect future capital structure?
- What are the key milestones leading up to the Final Investment Decision in 2H 2026?
- How will the Rafael Gas Project’s development timeline align with regional energy demand forecasts?
