$5M Placement to Accelerate Exploration in Botswana
Sydney, Dec 19, 2022 AEST (ABN Newswire) - Cobre Limited (
ASX:CBE) is pleased to announce that the Company has received firm commitments from institutional, sophisticated and professional investors for the placement of approximately 33.3 million new fully paid ordinary shares (New Shares) at an issue price of $0.15 per New Share to raise gross proceeds of A$5 million (Placement).
Highlights:
- Successful completion of a A$5 million placement, strongly supported by new and existing shareholders, including a number of high-quality institutional investors based domestically and offshore;
- Leading global investment manager, Sprott Asset Management, has invested almost A$2 million into the Placement;
- Metal Tiger Plc, the Company's largest shareholder, subscribed for its pro rata of A$1 million under the placement;
- Cobre's second largest shareholder, Commodity Discovery Fund, subscribed for A$300,000;
- In addition to the Placement, Cobre's drilling service provider, Mitchell Drilling Botswana, and exploration services provider, Remote Exploration Services (RES), have subscribed for US$400,000 and US$70,000 (respectively) at the Placement price, as part of scrip for service arrangements;
- The Company also intends to launch a Share Purchase Plan (SPP) to eligible shareholders in Australia and New Zealand to raise up to an additional A$1 million; and
- The Total to be raised through the Placement (including full take-up of the SPP) will be ~A$6.7 million, which is made up of A$6M cash and ~A$700k in scrip for services.
Commenting on the successful Placement, Martin Holland, Cobre's Executive Chairman, said:
"We are pleased to have secured the funds required to accelerate exploration on the Company's tenement holding in the Kalahari Copper Belt in Botswana. The Placement was well supported by our existing and new shareholders, who we thank for supporting the Board in delivering on our strategy to fast-track exploration and realise the potential of Cobre's Botswana tenements.
With Cobre's current $4M in cash at bank, combined with the funds raised through this Placement, Cobre will have a total of ~$10M that will be used to fund a substantial drill program, including two diamond drill rigs and one RC/AC drill rig onsite that will be drilling throughout 2023. "
Proceeds from the Placement, together with existing cash, will be used to accelerate exploration on the Company's tenement holding in the Kalahari Copper Belt in Botswana.
The Placement was strongly supported by new and existing shareholders, including Metal Tiger Plc (Metal Tiger), the Company's largest shareholder, which subscribed pro rata under the Placement for A$1 million worth of New Shares. The issue of New Shares to Metal Tiger is subject to shareholder approval at an upcoming extraordinary general meeting (EGM).
The Placement was conducted at a price of $0.15 per share representing an:
- 11.8 % discount to the close price of $0.17 on 15 December 2022;
- 18.6% discount to the five- day Volume Weighted Average Price (VWAP) of $0.184; and
- 28.3% discount to the ten- day VWAP of $0.209.
All New Shares issued under the Placement will rank pari passu with the existing ordinary shares on issue in the capital of the Company.
*To view the Indicative Timetable, please visit:
https://abnnewswire.net/lnk/5NO0NS9L
About Cobre Limited
Cobre Limited (ASX:CBE) is a copper and base-metals explorer with projects in Western Australia and Botswana. The Company recently discovered a new high-grade VMS deposit enriched in Copper, Gold, Zinc and Silver in Western Australia, and is currently exploring approximately 8,100 km2 of tenements within the Kalahari Copper Belt (KCB) in Botswana.
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