Highlights

  • Kinetiko received a further A$400,000 under its A$5.4 million placement, issuing 13,333,333 shares at A$0.03 on 27 October 2026.
  • Shareholders vote on the remaining A$3.5 million of the placement at the annual general meeting scheduled for 27 November 2026.
  • Pro forma funding of about A$6.036 million adds cash, placement proceeds and a balance still due from Mulilo.
  • Kinetiko earmarked the funds for Phase 1 CNG development, production permitting and a second drilling cluster in early 2027.

Four numbers add up to about A$6.036 million for Kinetiko Energy Limited (ASX:KKO): A$1.127 million of cash, A$400,000 newly received, an A$3.5 million third tranche awaiting a vote, and about A$1.009 million still due from Mulilo. The company told the market on 28 October 2026 that it had received a further A$400,000 before costs under the A$5.4 million placement announced on 30 July 2026. The money is aimed at Phase 1 development at the Brakfontein gas project in South Africa.

The second tranche

The tranche comprised 13,333,333 shares at A$0.03, issued to unrelated participants on 27 October 2026, with a cleansing notice and Appendix 2A lodged with the ASX. The remaining A$3.5 million needs shareholder approval at the annual general meeting in Perth, scheduled for 27 November 2026. That includes an A$3.0 million cornerstone commitment from major shareholder Talent 10 Holdings.

How the placement is built

The placement is split into three tranches totalling 180,000,000 shares. The first, of 50,000,000 shares raising A$1.5 million, was issued on 6 August 2026. The third comprises 116,666,667 shares worth A$3.5 million: 100,000,000 director-related shares for Talent 10 Holdings, which the company associated with non-executive director Mxolisi Mgojo and which need approval under Listing Rule 10.11, and 16,666,667 shares for unrelated participants under Listing Rule 7.1. Tranche three funds are due in early December 2026 if the resolutions pass.

Pro forma funds and their use

Kinetiko held cash of A$1.127 million at 30 September 2026. Adding the A$400,000, the A$3.5 million third tranche and about A$1.009 million from Mulilo gives pro forma funding of about A$6.036 million before placement costs, excluding spending after 30 September.

The Mulilo amount is the balance of a co-operation fee payable in rand, equivalent to A$1,260,720, under a Co-operation and Settlement Agreement referred to on 19 August 2026. The first 20 per cent arrived in the September quarter. The balance depends on financial close of the Newcastle wind project, targeted on or before 31 December 2026, and on exchange rates.

The indicative use of funds allocates A$3,052,780 to Phase 1 compressed natural gas (CNG) procurement, A$943,247 to exploration and development, A$614,195 to a production right and bulk sampling permit, A$405,872 to environmental bond guarantees, and A$1,019,906 to working capital and placement costs. The board may vary these allocations.

The Brakfontein project

Brakfontein is wholly owned by Kinetiko and has independently certified 2P reserves and about 6 trillion cubic feet of 2C contingent resources, the announcement states. The funds are for Phase 1 CNG development, production permitting, and drilling of a second cluster in early 2027, with first commercial gas targeted for late 2027. Contingent resources are not reserves, and the timing is a company target.

Timetable and conditions

The notice of meeting is dispatched on 28 October, the AGM follows on 27 November, tranche three issue and quotation are due in early December, and the Newcastle financial close is targeted by year-end. The dates are indicative. The third tranche and the Mulilo balance both depend on events that have not yet happened: a shareholder vote and a third-party financial close.