Canterbury Resources Invites Shareholders to Boost Holdings in $0.75M SPP
Canterbury Resources has announced a non-renounceable Share Purchase Plan to raise up to $0.75 million at a discounted price of 2 cents per share, offering eligible shareholders a chance to increase their holdings without brokerage fees.
- Non-underwritten Share Purchase Plan to raise $0.75 million
- Issue price set at $0.02 per share, a 9.1% discount to recent VWAP
- Eligible shareholders can apply for up to $30,000 worth of shares
- Funds targeted for exploration at Jack Shay and Peenam projects and working capital
- Directors intend to participate, with scale-back provisions in place
Capital Raising Details
Canterbury Resources Limited (ASX – CBY) has opened a Share Purchase Plan (SPP) aiming to raise up to $0.75 million by issuing new shares at an issue price of $0.02 each. This price represents a modest 9.1% discount to the company's recent five-day volume weighted average price, reflecting a balance between shareholder value and capital raising needs.
The SPP is non-renounceable and non-underwritten, meaning shareholders cannot transfer their rights and the company is not guaranteed to raise the full amount. Eligible shareholders registered by 7 – 00 pm AEST on 20 August 2025 in Australia, New Zealand, Papua New Guinea, Canada, or the United Kingdom are invited to participate. Each shareholder can apply for parcels ranging from $1,000 to $30,000 worth of shares, with no brokerage or transaction fees applied.
Use of Funds and Project Focus
The funds raised will primarily support project generation activities and exploration at the Jack Shay and Peenam projects, alongside general working capital and costs associated with the offer. Notably, exploration at other key projects including Briggs, Bismarck, and Morobe is currently fully funded by joint venture partners, insulating those activities from immediate funding pressures.
This targeted use of capital suggests the company is focusing its internal resources on advancing specific prospects while leveraging partnerships to maintain momentum across its broader portfolio.
Shareholder Participation and Governance
The company has outlined a clear timetable, with the offer opening on 27 August 2025 and closing on 23 September 2025. New shares are expected to be issued by 30 September 2025 and commence trading on 1 October 2025. The Board has also indicated that directors intend to participate in the SPP, signaling confidence in the company’s prospects.
However, the offer includes a scale-back mechanism, allowing the Board to reduce allocations if applications exceed the maximum cap, which is currently set at $1.2 million or 30% of existing shares on issue. This provision protects against excessive dilution and ensures equitable treatment of shareholders.
Regulatory and Market Considerations
The SPP complies with ASIC regulations and ASX listing rules, and the company has provided comprehensive terms and conditions to guide shareholder decisions. The offer is not available to US persons, reflecting regulatory constraints. Shareholders are advised to seek independent financial advice and consider market price fluctuations, as the share price may vary between the offer announcement and the issuance of new shares.
Overall, this capital raising initiative reflects Canterbury Resources’ strategic approach to funding exploration while managing shareholder dilution and maintaining regulatory compliance.
Bottom Line?
As Canterbury Resources advances its exploration agenda with fresh capital, investors will watch closely how the SPP uptake and subsequent share price movements unfold.
Questions in the middle?
- Will the SPP reach full subscription or trigger a scale-back?
- How will the market respond to the share price discount and new issuance?
- What progress can be expected from the Jack Shay and Peenam projects funded by this raise?
