Cobre Limited has secured $500,000 through a placement and is now launching a fully underwritten Loyalty Options Rights Issue to raise approximately AU$1.18 million, supporting its capital-light, catalyst-rich copper exploration strategy in Botswana.
- Two-tranche placement raises $500,000 including major shareholder participation
- Fully underwritten Loyalty Options Offer to raise up to AU$1.18 million
- Options priced at AU$0.008, exercisable at AU$0.066, expiring November 2028
- Funds to support exploration and general working capital in Botswana copper projects
- Partnership with BHP underpins capital-light, technology-driven growth strategy
Capital Raising to Accelerate Copper Exploration
Cobre Limited (ASX, CBE) has taken a decisive step to bolster its copper exploration efforts in Botswana's prolific Kalahari Copper Belt by completing a two-tranche placement raising $500,000 and launching a fully underwritten Loyalty Options Rights Issue targeting approximately AU$1.18 million. The capital raising is designed to fund the company’s focused growth strategy while rewarding loyal shareholders.
The placement saw $150,000 subscribed by a mining-focused family office, with the remaining $350,000 tranche earmarked for subscription by Cobre’s largest shareholder, Strata Investment Holdings Plc, pending shareholder approval. This backing from a major investor signals confidence in Cobre’s strategic direction.
Loyalty Options Offer, Structure and Purpose
The Loyalty Options Offer is a pro-rata, non-renounceable entitlement offer allowing eligible shareholders to acquire one new option for every three shares held at an issue price of AU$0.008 per option. Each option will be exercisable at AU$0.066 and will expire on 21 November 2028. The offer is fully underwritten by CPS Capital Group, which also acts as lead manager, ensuring the company secures the targeted funds.
Funds raised will primarily cover offer expenses and provide general working capital, underpinning Cobre’s capital-light, catalyst-rich approach. The company intends to list the new options on the ASX, subject to meeting listing requirements, which would provide liquidity and flexibility for investors.
Strategic Focus on Tier-1 Copper Assets
Cobre’s refreshed strategy emphasizes partnerships and technology-driven exploration to unlock value from its tier-1 copper assets. The company is advancing several key projects, including the Kitlanya Projects with deep drilling underway following seismic survey success, the Okavango Copper Project offering near-term discovery potential adjacent to existing production hubs, and the Ngami Copper Project, which boasts a low-cost, environmentally friendly copper extraction method with promising metallurgical recoveries.
Notably, Cobre’s partnership with mining giant BHP, under a US$25 million earn-in agreement, allows for significant exploration funding while preserving shareholder value. This collaboration highlights Cobre’s commitment to a capital-light model that leverages external expertise and resources.
Looking Ahead
Executive Chairman Martin Holland described the capital raising as a pivotal moment, aligning the company’s capital structure with its growth ambitions. The Loyalty Options Offer not only incentivizes existing shareholders but also positions Cobre to capitalize on upcoming exploration catalysts that could redefine its asset potential.
As the offer opens on 30 June 2025 and closes on 30 July 2025, investors will be watching closely to see how this funding round translates into tangible progress on the ground in Botswana’s copper belt.
Bottom Line?
Cobre’s capital raising sets the stage for a potentially transformative exploration phase, but execution and market response will be key to unlocking shareholder value.
Questions in the middle?
- Will shareholder approval for the second tranche placement by Strata Investment Holdings be secured smoothly?
- How soon can investors expect results from the ongoing deep drilling at Kitlanya and strategic drilling at Okavango?
- What are the prospects and timelines for listing the new options on the ASX, and how might this impact liquidity?