Tanami shares fall after $11.75m rights issue

Tanami Gold’s share price has plunged 34 per cent after announcing an $11.75 million entitlement offer underwritten by its largest shareholder, Allied Properties Resources.

The entitlements issue will be made to eligible shareholders at a price of 2 cents per share on the basis of a 1 to 1 ratio.

The company's focus for the funds is on extending its Kavanagh resource by drilling 12,000-15,000 metres until January 2014, funding the Coyote Gold Project and paying financing charges and expenses that incur.

Tanami shares closed the day more than 34 per cent lower at 2.9 cents.