The NT Independent is providing an update of resource news from across the Northern Territory. Highlights this week include Tamboran Resources urged to pay back a $7.5 million subsidy after looking to move its head office, Core Lithium upgrades MRE BP33 in NT, Falcon Oil & Gas concludes drilling procedure in Beetaloo sub-basin, and DevEx ups exploration funds through share placement and entitlement offer.

Tamboran Resources relocating to the United States; urged to pay back $7.5M public subsidy

Tamboran Resources Ltd, which is looking to transfer all its common shares to a new company, Tamboran US HoldCo, to be set up in Delaware, United States, is urged by Frack Free NT to return a $7.5 million grant it was awarded by the Federal Government.

Tamboran said it is moving to the US to exploit its more active shale investors and deeper capital markets. The move, according to the company, would position it for its next phase of growth as it fast-tracks its development at the Beetaloo Sub-basin, as well as benefit its shareholders.

Frack Free NT, meanwhile, said Tamboran should return a $7.5 million grant it got from the Federal Government last year. The group said the company should pay back the grant before it transfers to Delaware, which is a known tax secrecy jurisdiction.

“It makes sense that this company might feel more comfortable in a place like Delaware, in a country that has unfortunately allowed fracking to run rampant. It will also be far harder for the Australian public to scrutinise Tamboran’s corporate activity if it is successful in delisting,” Frack Free NT spokesperson Phil Scott said.

He said the company should pay back the taxpayer cash it was granted by the former Federal Government at the very least.

Core Lithium upgrades MRE BP33 in NT

Core Lithium (CXO) has upgraded its mineral resource estimate at BP33, a deposit within the company’s Finniss lithium operation in the NT. MRE estimates at BP33 have increased to 89 per cent in both the measured and indicated categories, marking a 35 per cent rise from the previous estimate.

“Increasing the confidence in the BP33 resource is a significant step in the progress of the feasibility study and supports the development of the BP33 mine plan. The early works program and the construction of the covered box cut are progressing well. We remain on schedule to make a final investment decision for BP33 in early 2024,” CXO CEO Gareth Manderson said.

The updated MRE will be used by the company for its mine plan and feasibility study, which are now in the design phase.

Falcon Oil & Gas concludes the drilling procedure in Beetaloo sub-basin

Drilling operations on the Amungee NW 3H (“A3H”) well in EP98 have been completed by joint venture partners Falcon Oil & Gas Australia Ltd and Tamboran Pty Ltd, with the drill hole cased and cemented to a total measured Depth (TD) of 3,837 meters, including a horizontal section of 1,100 meters in the Amungee Member B-shale, the company said.

A simulation program is scheduled for the second quarter of 2024. Total drilling and cementing expenses for the A3H well amounted to $12.6 million.

“We are delighted to have completed the A3H horizontal well section and are very encouraged by the drilling days achieved by H&P in reaching TD at A3H. We now look forward to the next phase of operations in the Beetaloo with the stimulation and extended production testing,” Falcon CEO Philip O’Quigley said.

DevEx ups exploration funds

DevEx is looking to raise $21.1 million in capital through a share placement and fully underwritten entitlement offer to expand its exploration programs in the NT and WA.

The company said it received binding commitments for the placement of 33.3 million shares (30 cents apiece) from both existing and new institutional and sophisticated investors to raise an initial $10 million. It is also undertaking a fully underwritten pro-rata renounceable entitlement offer also priced at 30c a share, to raise a further $11.1 million.

The fresh capital will enable the company to boost drilling momentum on its two key projects, the Nabarlek uranium project in NT and the Kennedy ionic clay-hosted rare earth project in Queensland, the company said.

“Against the backdrop of the most favourable environment for uranium exploration in over a decade, we have been delivering exciting results from Nabarlek, with shallow high-grade mineralisation encountered at several prospects, surrounding the historic Nabarlek mine,”  DevEx managing director Brendan Bradley said.

The entitlement offer will open on October 23 and close on October 31.