Cobre Ltd (ASX:CBE) (ASX: CBE) has completed a A$4.6 million placement, with funds to be used towards its Ngami and Okavango projects in the Kalahari Copper Belt in Botswana and also the High Purity Quartz project in Western Australia.
The placement to institutional, sophisticated and professional investors was for around 71.4 million new fully paid ordinary shares at A$0.065 per share and will occur in two tranches:
- Tranche 1: Raising some A$3.8 million through the issue of 59.1 million new shares, using Cobre’s existing placement capacity under ASX Listing Rules 7.1 and 7.1A.
- Tranche 2: Raising around A$0.8 million with the issue of 12.3 million new shares, pending shareholder approval at an Extraordinary General Meeting (EGM) expected in December 2024.
The placement has attracted strong support from both new and existing shareholders, including high-quality institutional investors, domestically and internationally.
Strata Investment Holdings PLC (ASX:SRT), Cobre’s largest shareholder, contributed A$250,000, while several directors collectively subscribed for A$100,000.
Additionally, Mitchell Drilling Botswana, Cobre’s drilling service provider, invested A$250,000 in the placement. The contributions from Strata, directors and Mitchell Drilling remain subject to approval at the upcoming EGM.
“The Cobre team is pleased to have secured additional funds which will be strategically used to accelerate exploration on the company’s Ngami and Okavango projects in Botswana and High Purity Quartz project in Western Australia.
"I would like to thank all existing and new shareholders who participated in the placement for supporting the board’s strategy,” Cobre executive chairman Martin Holland said.
Placement details
Priced at A$0.065 per share, the placement represents:
- An 18.8% discount to the last closing price of A$0.0800 on 29 October 2024.
- A 19.8% discount to the five-day volume-weighted average price (VWAP) of A$0.0811.
Participants will be entitled to apply for one free attaching option for every two new shares allocated, exercisable at A$0.098 each with an expiry 18 months from the issue date.
These unlisted attaching options are also subject to shareholder approval at the EGM. A prospectus for the attaching options is expected to be lodged with the Australian Securities and Investments Commission (ASIC) in November 2024.
All new shares and any shares issued upon the exercise of attaching options will rank equally with existing ordinary shares. Canaccord Genuity (TSX:CF, LSE:CF) and CPS Capital Group Pty Ltd served as joint lead managers and joint bookrunners for the placement.