Tanami gets $12m lifeline
The share register of former gold miner turned explorer Tanami Gold is set for a major shake-up following its recent rights issue, with chief shareholder Allied Group once again set to act as kingmaker.
Tanami, which had a share price of 40� this time last year, officially wrapped up its heavily discounted one-for-one issue at 2� a share yesterday, raising a crucial $11.75 million to ensure its survival.
The raising had a shortfall of almost 250 million shares, picked up by its Hong Kong-based major shareholder, Allied Group.
The group, which lists property as its main investment, passed on 157 million shares to sub underwriters. It will take on at least 93 million extra shares, taking its holding from 23.4 per cent to about 32 per cent.
Allied owns 55.6 of Sun Hung Kai Investment Services, which holds 12.8 per cent of Tanami after the raising.
The former high-flying gold miner - once backed by prospector Mark Creasy, Hartleys chairman John Featherby and Sirius Resources' backer Rick Indrisie, known as Rick the Fish - had a horror 12 months, culminating in the closure of its Coyote mine in April and in a fiery annual meeting last month.
The trio, who now hold 3.8 per cent of the company, did not participate in the rights issue.
Tanami said it would use the funds to drill at its Kavanagh project, on the NT-WA border, for working capital and for financing charges on existing loans.
Director Brett Montgomery picked up 20 million of the shortfall, worth $400,000.
