Highlights

  • Kinetiko secures firm commitments to raise AUD 3.15M through share placement.
  • Proceeds to fund Project Alpha Phase 1A and exploration expansion.
  • Investment includes participation from South African and Australian investors.

Kinetiko Energy Ltd (ASX:KKO) has announced that it received firm commitments from professional and sophisticated investors to raise approximately AUD 3.15M (before costs) through a placement of 48,507,262 new fully paid ordinary shares at an issue price of AUD 0.065 per share. The placement was not underwritten.

The investment round was cornerstoned by key South African and Australian investors, including Talent 10 Holdings, led by recently appointed Non-Executive Director Mxolisi Mgojo, pending shareholder approval. Related parties of the directors have subscribed for up to 15,385,000 placement shares, raising approximately AUD 1M before costs, subject to shareholder approval at the Annual General Meeting scheduled for 28 November 2025.

Tranche Structure and Pricing

The placement will be executed in two tranches.

  • Tranche 1: Issue of 33,122,262 shares to unrelated participants under the company’s placement capacity in accordance with ASX Listing Rule 7.1.
  • Tranche 2: Issue of 15,385,000 related party shares, subject to shareholder approval under ASX Listing Rule 10.11.

The issue price of AUD 0.065 per share represents a 9.7% discount to the last traded price of AUD 0.072 on 7 November 2025, and a 13.6% discount to the 30-day volume-weighted average price (VWAP) of AUD 0.0757.

Application of Funds

Funds raised from the placement will be used to support the Phase 1A gas-production development of Project Alpha, including the drilling and commissioning of production wells at Brakfontein, gas testing, and certification of gas reserves. Additional funds will also be allocated for exploration activities near Majuba and other potential areas. The remaining balance will be applied to general working capital requirements.

Indicative Timeline

Key indicative dates for the placement include the announcement and trading resumption on 12 November 2025, followed by the settlement of shares on 20 November 2025. The quotation of Tranche 1 shares is scheduled for 21 November 2025, while the Annual General Meeting will be held on 28 November 2025. Subject to shareholder approval, the quotation of Tranche 2 shares is expected to take place on 1 December 2025.

Capital Structure and Management

Upon completion, Kinetiko’s undiluted share capital will increase from 1,487,660,103 to 1,536,167,365 shares. The fully diluted share capital will rise to 1,632,242,365 shares, including existing options and performance rights.

Share Performance of KKO

KKO was trading at AUD 0.073 per share as of 12 November 2025 at the time of writing.