Koba’s $1.7M Capital Raise Targets High-Grade Uranium Drilling at Yarramba
Koba Resources is set to raise $1.7 million to fund its next phase of drilling at the promising Yarramba Uranium Project, following a successful initial campaign that uncovered multiple high-grade uranium deposits.
- Placement to raise $600,000 at $0.036 per share with free-attaching options
- Non-renounceable entitlement issue targeting up to $1.1 million
- Funds earmarked primarily for Phase 2 drilling at Yarramba Uranium Project
- Initial drilling revealed three high-grade uranium discoveries with open mineralisation
- Cygnet Capital appointed as lead manager for both capital raising components
Capital Raising to Propel Exploration
Koba Resources Limited (ASX: KOB) has announced a capital raising initiative aimed at securing approximately $1.7 million to advance its Phase 2 drilling program at the Yarramba Uranium Project in South Australia. This follows a highly encouraging first drilling phase that identified three new high-grade uranium prospects, underscoring the project's potential.
The capital raise comprises a $600,000 placement to sophisticated investors at $0.036 per share, accompanied by one free-attaching option for every two shares subscribed. Complementing this is a non-renounceable entitlement issue to existing shareholders, offering up to $1.1 million on similar terms. Both components include options exercisable at $0.08 until June 2028, providing investors with potential upside participation.
Promising Early Drilling Results
The initial drilling campaign at Yarramba delivered significant results, with three standout prospects: Everest, Berber, and Chivas. At Everest, mineralisation was detected over a 4-kilometre strike length, including multiple intercepts exceeding 1,000 parts per million uranium oxide equivalent. Berber revealed high-grade mineralisation over 700 metres of strike, remaining open in all directions, while Chivas showed encouraging grades with mineralisation extending east and south.
These discoveries highlight the extensive potential within the 5,000 square kilometre Yarramba tenure, which includes over 250 kilometres of palaeochannels known to host uranium mineralisation. The proximity to the established Honeymoon Uranium Mine, just 17 kilometres south, further enhances the project's strategic value.
Use of Funds and Strategic Outlook
The funds raised will be primarily allocated to exploration activities, including follow-up drilling at the three key prospects and testing additional high-priority targets scheduled for the third quarter of 2025. A portion of the capital will also cover offer costs and provide working capital to support ongoing operations.
Cygnet Capital Pty Ltd has been appointed as the lead manager for both the placement and entitlement issue, reinforcing the company's commitment to a well-structured capital raise. The placement is expected to settle by mid-June, with the entitlement issue prospectus to be dispatched shortly thereafter.
Looking Ahead
Koba’s board has signaled strong support for the entitlement issue, with directors intending to fully participate. The success of this capital raise and the forthcoming drilling results will be pivotal in shaping investor sentiment and the company’s trajectory in the uranium sector.
Bottom Line?
Koba’s $1.7 million raise sets the stage for a critical exploration phase that could redefine its uranium prospects and market standing.
Questions in the middle?
- Will the Phase 2 drilling confirm and extend the high-grade uranium zones discovered so far?
- How will the market respond to the dilution from the placement and entitlement issue?
- What are the longer-term plans for resource development if exploration continues to yield positive results?
