How Will Cobalt Blue’s $2.5M Raise Accelerate Its Cobalt Refinery Plans?

Funding Package Overview

Cobalt Blue Holdings Limited (ASX – COB) has successfully secured a $2.5 million equity funding package designed to bolster its critical minerals projects. The raise comprises a $1 million institutional placement and a $1.5 million placement agreement with New York-based Lind Global Fund III, with an option to extend funding by a further $4.5 million subject to mutual agreement. This capital injection arrives at a pivotal time as the company advances its flagship Kwinana Cobalt Refinery and exploration initiatives.

Strategic Use of Proceeds

The funds will primarily support advancing the Kwinana Cobalt Refinery towards a final investment decision (FID), a critical milestone for Australia’s first dedicated cobalt refinery aimed at supplying high-purity cobalt products for lithium-ion batteries and defense applications. Additionally, Cobalt Blue plans to develop a pre-feasibility study (PFS) for its Halls Creek copper-zinc-silver project, which offers diversification into base metals and precious metals exploration.

Other key uses include finalizing obligations with American Rare Earths Limited, a former joint venture partner in the Broken Hill Cobalt Project, and evaluating black mass processing technologies at the Broken Hill Technology Centre. These efforts underscore the company’s commitment to optimizing its resource base and refining capabilities.

Placement Details and Investor Confidence

The $1 million placement was executed at $0.045 per share, representing a 16% discount to the 15-day volume-weighted average price, and included free-attaching options exercisable at $0.08 per share over three years. Pamplona Capital Pty Ltd acted as lead manager and bookrunner, securing strong institutional support.

Lind Global Fund III’s involvement brings a seasoned institutional investor with a track record of over 200 direct investments totaling more than US$2 billion. Lind’s founder, Jeff Easton, expressed enthusiasm about partnering with Cobalt Blue to accelerate value creation, highlighting the company’s clear vision and execution capabilities.

Placement Agreement Terms and Future Capital

The placement agreement with Lind includes an initial $1.5 million advance payment in exchange for shares and options, with a 24-month term and flexible subscription terms. The agreement allows Cobalt Blue to repay the investment with a premium or issue shares at a fixed or variable price, providing financial flexibility. A further $4.5 million in funding is available if both parties agree, potentially supporting longer-term growth initiatives.

Looking Ahead

Alongside the funding announcement, Cobalt Blue plans to seek shareholder approval to change its name to Core Blue Minerals Limited, signaling a strategic evolution. The company’s focus on refining and exploration projects positions it well within the critical minerals sector, which remains a priority for supply chain diversification and battery technology development.