Key Highlights

  • A second placement tranche of A$400,000 was completed through 13,333,333 shares at A$0.03, issued on 27 October 2026.
  • The remaining A$3.5 million of the placement needs shareholder approval at the 27 November 2026 AGM, including a A$3.0 million commitment from Talent 10 Holdings.
  • Pro forma funding is about A$6.036 million before costs, with close to half depending on a shareholder vote and the Newcastle wind project financial close.

A funding update

Kinetiko Energy (ASX:KKO) 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 second tranche comprised 13,333,333 shares at A$0.03 issued to unrelated participants, and the shares were issued on 27 October 2026. A cleansing notice and Appendix 2A were lodged with the ASX.

The company said the remaining A$3.5 million of the placement needs shareholder approval at its annual general meeting, which it said is scheduled for 27 November 2026 in Perth. That includes a A$3.0 million cornerstone commitment from major shareholder Talent 10 Holdings.

How the placement is structured

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 second is the A$400,000 tranche now completed. The third comprises 116,666,667 shares worth A$3.5 million: 100,000,000 director-related shares to Talent 10 Holdings, which the company associated with non-executive director Mxolisi Mgojo and which require approval under Listing Rule 10.11, and 16,666,667 shares to unrelated participants requiring approval under Listing Rule 7.1. Tranche three funds are due in early December 2026 if the resolutions pass.

On the company's capital structure table, fully paid ordinary shares would rise from 1,586,167,355 before the second tranche to 1,599,500,688 afterwards, and to 1,716,167,355 if the third tranche is approved and issued.

Pro forma funds and how they would be spent

Kinetiko reported cash of A$1.127 million at 30 September 2026. Adding the A$400,000 received, the A$3.5 million third tranche and about A$1.009 million still to come from Mulilo, the company arrived at pro forma funding of about A$6.036 million before placement costs. The company noted that the figure excludes 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 in the company's 19 August 2026 announcement. The initial 20 per cent was received in the September quarter. The balance depends on financial close of the Newcastle wind project, which the company said is targeted on or before 31 December 2026, and on exchange rates.

The indicative use of funds allocates A$3,052,780 to procurement for Phase 1 compressed natural gas development, 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 general working capital and placement costs. The company said these allocations are based on the Field Development Plan budget from its 1 July 2026 announcement, assume both tranche three approval and receipt of the Mulilo balance, and may be varied by the board.

The Brakfontein project

Brakfontein is wholly owned by Kinetiko and, according to the announcement, has independently certified 2P reserves and about 6 trillion cubic feet of 2C contingent resources. The company said 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 rather than a confirmed outcome.

Conditions and next steps

The timetable in the announcement runs from dispatch of the notice of meeting on 28 October 2026 to the AGM on 27 November, tranche three issue and quotation in early December, and the targeted Newcastle financial close by year-end. The company said the dates are indicative and may change. It also reported options and performance rights on issue, bringing the fully diluted total to 1,822,992,355 securities if tranche three is approved. Close to half of the pro forma funding therefore still depends on events that have not yet occurred: a shareholder vote and a third-party financial close.