Cobre Ltd (ASX:CBE) has secured A$4 million in a placement, saying it has garnered robust support from new and existing shareholders, including high-calibre institutional investors both domestically and internationally.
The company’s plan for this cash boost is to channel it into expediting the exploration and development of its projects within the Kalahari Copper Belt in Botswana.
Significant investment
The placement attracted significant investment from Strata Investment Holdings PLC, Cobre’s principal shareholder, and various company directors, who contributed $800,000 and $675,000 respectively.
These commitments are pending shareholder approval, which will be sought at an upcoming extraordinary general meeting (EGM).
Mitchell Drilling Botswana and Remote Exploration Services, key partners in Cobre's drilling and exploration activities, also participated with an A$100,000 investment each, which speaks to the collaborative approach towards advancing the project.
Cobre announced the issuance of around 76.9 million new fully paid ordinary shares at 5.2 cents per share, arranged into two tranches.
The first tranche will raise $2.3 million through 43.7 million new shares, leveraging the company’s existing placement capacity.
The second tranche, subject to shareholder approval at the forthcoming EGM, is expected to generate an additional $1.7 million from some 33.2 million new shares.
Advancing copper discovery
This financial injection will be instrumental in accelerating exploration efforts on Cobre's holdings in the Kalahari Copper Belt, a region with significant potential for copper discovery.
The placement was executed at a 17.5% discount to the closing price on February 29, 2024, also offering participants the opportunity to acquire free attaching options under certain conditions, further incentivising investment.
Canaccord Genuity (TSX:CF, LSE:CF) (Australia) Limited played a pivotal role as the lead manager for the placement, indicating strong market confidence in Cobre’s strategic direction and the intrinsic value of its Botswana projects.
This development marks a significant milestone for Cobre, poised to enhance shareholder value through diligent exploration and development activities in the promising Kalahari Copper Belt.
“The Cobre team is pleased to have secured additional funds which will be strategically used to accelerate exploration on the company’s tenement holding in the Kalahari Copper Belt in Botswana,” executive chair Martin Holland said.
Value in Botswanan projects
“With the recent positive hydrogeological results from the Ngami Copper Project as well as the new intersection encountered when drilling the PW001 production well, there is strong reason for the board to believe that there is significant value to be unlocked on the company’s Botswanan projects.
“I would like to thank all existing and new shareholders who participated in the placement for supporting the board’s strategy to fast-track exploration and development in this highly prospective region of southern Africa.”