CuFe Ltd (ASX:CUF) has received commitments to raise $3 million via a placement to professional and sophisticated investors with funds to support the fast-tracking of exploration at its Tennant Creek copper, North Dam lithium and West Arunta niobium projects.
Under the placement, CuFe will issue 187.5 million ordinary shares at $0.016 per share. For every two placement shares subscribed for, investors will also receive one free-attaching option with an exercise price of $0.025 expiring three years from the date of issue.
The placement issue price represents a discount of 16.8% to the company’s 5-day VWAP and 7.8% to the 15-day VWAP.
"Keen to fast-track exploration"
CUF executive director Mark Hancock said, “We are pleased to have secured this injection of funds into the company to fund exploration activities at our projects, which have prospectivity for some of the world’s most sought after future facing minerals in copper, lithium, niobium and rare earths.
“CuFe has been in a different position to many junior players in that since its JWD iron ore mine commenced in 2021 it has been providing cash flow to fund our exploration and administration costs without the need to raise further equity.
"While that remains the case we are keen to fast-track our exploration activities now we have such a prospective portfolio, rather than being able to perform them as and when the iron ore price allows, so this raise gives us that flexibility.
“I would like to thank Evolution and Peak and their clients for supporting the raise and look forward to working with them to grow the company for the benefit of all shareholders.”
Copeak Pty Ltd and Evolution Capital Pty Ltd were engaged as corporate advisors and joint lead manager to provide services in connection with the placement.