Dune Oil plans up to $8.3 million unit financing for M47 work

Key Highlights

• Dune Oil agreed to a brokered best-efforts private placement for up to $8.3 million gross.
• The offering is priced at $0.10 per unit, with a $0.125 warrant exercisable for 36 months.
• Dune plans to fund seismic and drilling on its M47 Block in Türkiye and repay debt.

Dune Oil Corp. (CSE: DUNE) (FSE: Z621) has agreed to a brokered, best-efforts private placement of units priced at $0.10 per unit for aggregate gross proceeds of up to $8,300,000, according to the company’s news release.

The financing is being led by Research Capital Corporation as lead agent and sole bookrunner, on behalf of a syndicate that includes Canaccord Genuity Corp. The company expects the closing to occur on or about November 13, 2026, subject to regulatory approvals including conditional approval from the Canadian Securities Exchange.

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Each unit will include one common share and one common share purchase warrant. Each warrant will allow the holder to buy one additional common share at $0.125 per share for 36 months after closing. Under applicable Canadian securities laws, the warrants are expected to be exercisable beginning 60 days after the closing date, and Dune said it will use commercially reasonable efforts to obtain approvals to list the warrants on the Canadian Securities Exchange.

The company said it expects “president’s list” investors to participate alongside other investors for aggregate gross proceeds of up to $2,000,000.

Dune said it plans to use the net proceeds for seismic and drilling work on its M47 Block (parts C3 and C4) onshore oil block in Türkiye, including re-entry of the C-2 well for deepening and testing, a side-track deviated or lateral of the C-1 well, and an exploration well tentatively planned on the South prospect (subject to seismic results). The planned work program also includes about 40 km of seismic work on the North discovery area and South prospect, along with settlement of existing indebtedness, working capital and general corporate purposes.

The units are expected to be issued under the listed issuer financing exemption, which the company said would make the securities “free-trading” upon closing under applicable Canadian securities laws.

The agents are to receive a cash commission of 8.0% of aggregate gross proceeds and broker warrants equal to 8.0% of the number of units sold, subject to reductions for certain subscribers identified by the company. Each broker warrant will entitle the holder to purchase one unit at an exercise price equal to the unit issue price for 36 months following closing.

Dune describes itself as a Canadian oil exploration company focused on Türkiye and says it is advancing the onshore M47 oil exploration block in the Cudi-Gabar petroleum province of southeastern Türkiye.

The original press release is available on stockhouse.com