Cobalt Blue Holdings Ltd (ASX:COB, OTC:CBBHF) has secured $5 million through an institutional share placement, which it plans to channel into its refinery development program and re-mining initiatives.
Advancing refinery program
Proceeds from the well-supported placement will facilitate the progress of refinery development, including the completion of pre-construction activities like technical studies, approvals and permits, feedstock agreements and marketing and offtake agreements.
READ: Cobalt Blue races forward with plans for Australia's first cobalt-nickel refinery
Funds will also support the progression of the Hudbay relationship through advancing studies and the assessment of additional re-mining opportunities in Australia, North America and Europe.
Additionally, the funds will aid in the review of the Broken Hill Cobalt Project, cover corporate costs and provide general working capital, including placement costs.
READ: Cobalt Blue partners with Regeneration to commercialise and restore mine waste deposits
Substantial support
The placement attracted substantial support from both domestic and international institutional investors, leading to the issuance of 43,478,261 new fully paid ordinary shares priced at A$0.115 each.
These new shares will rank equally with the existing shares currently on issue. Additionally, investors will receive 43,478,261 free-attaching unlisted options, exercisable at A$0.20 per option, valid for three years from their issue date.
Cobalt Blue CEO Joe Kaderavek said: “We welcome several highly regarded domestic and international institutional investors onto the Cobalt Blue register in what was a strongly supported capital raising.”
Should all the options be exercised, the company will secure an additional A$8.7 million, which will be directed towards further project development and bolstering general working capital.
Blue Ocean Equities Pty Ltd and Canaccord Genuity served as joint lead managers and bookrunners for the placement and settlement is expected around April 23.