Clara Resources Raises A$600,000 at 0.3 Cents to Fund Ashford Coal

Capital Raising to Sustain Project Momentum

Clara Resources Australia Ltd (ASX – C7A) has announced a strategic capital raising of approximately A$600,000 through a two-tranche placement priced at 0.3 cents per share. This move is designed to provide a significant funding boost for the Ashford Coking Coal Project in New South Wales, as well as to shore up the company’s general working capital.

The first tranche, raising A$230,000, will be issued under Clara’s existing placement capacity, allowing the company to expedite the capital injection without delay. The second tranche, which will raise an additional A$370,000, is contingent on shareholder approval expected at a general meeting in late July 2025. Notably, any related party participation will be included in this second tranche, ensuring transparency and governance compliance.

Strategic Focus Amid Market Challenges

Managing Director Peter Westerhuis acknowledged the tough environment facing junior coal companies but expressed confidence in the support from sophisticated investors. Clara has taken a disciplined approach by reducing non-essential expenditures to conserve cash, thereby prioritizing funds for high-impact project activities at Ashford.

Alongside advancing the core Ashford project, Clara is actively evaluating complementary opportunities that could enhance its asset base and improve access to capital. This dual focus on project execution and portfolio growth reflects a cautious yet opportunistic strategy aimed at delivering shareholder value despite prevailing market headwinds.

Broker Options and Governance

As part of the capital raising, Peak Asset Management and Cerberus Advisory, who acted as lead manager and advisor respectively, will receive broker options equivalent to 3% and 1% of the shares on issue post-placement. These options, exercisable at 0.75 cents per share over two years, are also subject to shareholder approval. This aligns the interests of brokers with the company’s future performance while maintaining shareholder oversight.

The timetable for the placement is clear, with tranche 1 shares expected to be issued by 20 June 2025 and the general meeting for tranche 2 and broker option approvals slated for late July. Investors will be watching closely for the outcomes of these approvals and the company’s progress on its strategic initiatives.