Centaurus Metals Limited has opened a Share Purchase Plan (SPP) to raise up to AUD 3 million by offering shares at a 20% discount, accompanied by free attaching options. This initiative complements a recent $20 million placement to institutional investors and aims to fund key nickel and copper projects in Brazil.
- SPP offers shares at $0.36, a 20% discount to last traded price
- Eligible shareholders can subscribe up to $30,000 without brokerage fees
- One free attaching unlisted option for every two shares subscribed
- SPP aims to raise $3 million, not underwritten and subject to scale back
- Funds to support Jaguar Nickel Sulphide Project and Boi Novo Copper Project
Overview of the Share Purchase Plan
Centaurus Metals Limited (ASX – CTM) has announced a Share Purchase Plan (SPP) designed to raise up to AUD 3 million by offering eligible shareholders the opportunity to purchase shares at a discounted price of $0.36 each. This price represents a 20% discount to the last traded price of $0.45 on 11 August 2025, providing an attractive entry point for shareholders to increase their stake without incurring brokerage fees.
The SPP allows shareholders registered in Australia and New Zealand as of 13 August 2025 to subscribe for parcels ranging from $1,000 up to a maximum of $30,000. Notably, for every two shares subscribed under the plan, participants will receive one free attaching unlisted option exercisable at $0.50 until 30 November 2027. These options offer potential upside if the company’s share price appreciates over the next two years.
Context and Complementary Capital Raising
This SPP follows a recent institutional placement announced on 14 August 2025, which successfully raised $20 million at the same issue price of $0.36 per share. The placement shares were issued on 21 August 2025, utilizing the company’s available placement capacity under ASX Listing Rules. Together, the placement and the SPP aim to bolster Centaurus’ balance sheet to advance its flagship projects.
The funds raised will primarily support the development of the Jaguar Nickel Sulphide Project located in northern Brazil, a key asset in Centaurus’ portfolio. Additional proceeds will assist in progressing the Jaguar Strategic Partnering and debt funding processes ahead of a Final Investment Decision. The company also intends to allocate capital towards exploration activities at the Boi Novo Copper Project and general working capital requirements.
Terms, Risks, and Participation Details
The SPP is not underwritten, and the company reserves the right to scale back applications at its discretion, which introduces some uncertainty regarding the final amount raised. Shareholders should be aware that the market price of shares may fluctuate between the application date and the issue date, potentially resulting in the SPP shares being issued at a price higher than the prevailing market price at allotment.
Directors of Centaurus are eligible to participate in the SPP, signaling confidence in the company’s prospects. The attaching options issued under the SPP are governed by a separate prospectus, which provides detailed terms and conditions. The SPP opens on 22 August 2025 and closes at 5 – 00pm AWST on 5 September 2025, with shares expected to commence trading on 15 September 2025.
Implications for Shareholders and Market
For existing shareholders, the SPP offers a cost-effective way to increase their holdings at a discount while gaining additional options that could enhance future returns. However, the potential for scale back means that investors may receive fewer shares than applied for. The issuance of free attaching options also introduces a layer of potential dilution if exercised, although this is balanced by the capital raised to fund growth initiatives.
Overall, the combined capital raising efforts underscore Centaurus Metals’ commitment to advancing its nickel and copper projects in Brazil, positioning the company to capitalize on growing demand for these critical minerals. Investors will be watching closely to see the uptake of the SPP and subsequent developments in project funding and execution.
Bottom Line?
Centaurus’ SPP launch marks a pivotal step in funding its Brazilian projects, but subscription uptake and market response will shape the next phase.
Questions in the middle?
- Will the SPP reach its $3 million target or face significant scale back?
- How will the market price react post-SPP issuance and option exercise periods?
- What progress will Centaurus make on Jaguar and Boi Novo projects with the new funds?