Carnaby Resources has completed the settlement of Tranche 2 of its recent share placement, issuing 13.5 million new shares to raise approximately $4.2 million, including participation from its board members.
- Issued 13.5 million shares raising $4.2 million before costs
- Tranche 2 placement approved by shareholders on 29 January 2025
- Directors subscribed for shares, signaling confidence
- Funds bolster cash position to nearly $19 million
- Supports ongoing development of Greater Duchess Copper Gold Project
Capital Raise Completion
Carnaby Resources Limited (ASX: CNB) has successfully settled the second tranche of its recently announced share placement, issuing approximately 13.5 million new shares at $0.31 each. This tranche raised around $4.2 million before costs, following shareholder approval at a general meeting held on 29 January 2025.
The placement forms part of Carnaby’s broader capital raising strategy initiated in November 2024, aimed at strengthening its balance sheet to support ongoing exploration and development activities. The fresh capital injection lifts the company’s cash reserves to an estimated $18.9 million, combining existing cash and the proceeds from this tranche.
Director Participation Signals Confidence
Notably, the placement saw participation from Carnaby’s directors, with Managing Director Rob Watkins and Non-Executive Directors Peter Bowler, Greg Barrett, and Paul Payne collectively subscribing for over 1.6 million shares. This insider involvement often serves as a positive signal to the market, reflecting management’s belief in the company’s prospects and alignment with shareholder interests.
The company has committed to lodging Appendix 3Y forms disclosing the details of these share issues by the directors, ensuring transparency and compliance with ASX requirements.
Strategic Focus on Greater Duchess Project
The capital raised is expected to underpin Carnaby’s advancement of the Greater Duchess Copper Gold Project in Queensland, a key asset boasting a pro forma mineral resource estimate of 27 million tonnes at 1.5% copper equivalent. The project hosts multiple significant iron oxide copper gold (IOCG) deposits, including Mount Hope, Nil Desperandum, and Lady Fanny.
With a pre-feasibility study underway and targeted for completion in the third quarter of 2025, the company is positioning itself to unlock value from these deposits. Binding tolling and offtake agreements with Glencore further enhance the project’s commercial viability and market access.
Regulatory Compliance and Market Implications
Carnaby has issued a cleansing notice under section 708A(5)(e) of the Corporations Act 2001, confirming compliance with disclosure obligations and ensuring the new shares can be freely traded without further disclosure requirements. This procedural step is standard but critical to maintaining market confidence and liquidity.
While the share placement dilutes existing shareholders to some extent, the strengthened cash position and director participation may mitigate concerns by underscoring the company’s growth ambitions and financial discipline.
Bottom Line?
Carnaby’s successful capital raise and director backing set the stage for pivotal developments at Greater Duchess in 2025.
Questions in the middle?
- How will the increased share count impact Carnaby’s share price and shareholder value?
- What progress and results can be expected from the Greater Duchess pre-feasibility study later this year?
- Will further capital raises be necessary to advance Carnaby’s exploration and development pipeline?