Clara Resources Raises $1.6M at $0.003 to Fund Ashford Feasibility

Capital Raising Overview

Clara Resources Australia Ltd (ASX, C7A) has announced a successful capital raising initiative designed to inject approximately $1.6 million into the company. This funding round comprises a $0.315 million institutional placement and a fully underwritten 1 for 2 non-renounceable rights issue priced at $0.003 per share. The rights issue is underwritten by Sophisticated Capital Pty Ltd, ensuring the full $1.272 million target is met regardless of shareholder uptake.

Strategic Use of Funds

The proceeds will be directed primarily towards advancing the Ashford Coking Coal Project in New South Wales. Clara plans to use the capital to conduct resource delineation drilling aimed at upgrading the resource classification to measured and indicated status. Additionally, the funds will support further project development activities culminating in a Preliminary Feasibility Study (PFS), a critical milestone for the project’s progression.

Managing Director Peter Westerhuis highlighted the significance of this capital raise in the context of the company’s recent consolidation efforts, including securing full ownership of the Ashford asset and delivering a scoping study that demonstrated strong project economics.

Shareholder Participation and Pricing

Eligible shareholders are invited to participate in the rights issue on a pro-rata basis, with the opportunity to acquire one new share for every two shares held as of the record date, 24 October 2025. The offer price represents a 50% discount to the last closing price and a 38.8% discount to the 10-day volume weighted average price, reflecting a strategic move to incentivize participation and secure the necessary capital.

The placement shares have already been subscribed by institutional and sophisticated investors, with settlement expected by 24 October and trading commencing on 27 October. The rights issue opens on 29 October and closes on 7 November 2025.

Underwriting and Fees

Sophisticated Capital Pty Ltd’s full underwriting of the rights issue provides Clara with certainty of funding, a crucial factor in maintaining momentum on the Ashford project. In return, the underwriter will receive a 7% fee on the underwritten amount and 135 million options exercisable at $0.0045, expiring in four years. Similarly, Cerberus Advisory, the lead manager, will receive fees and options as part of their engagement.

Looking Ahead

This capital raising positions Clara to accelerate its exploration and development activities at Ashford, a project with promising coking coal potential. The forthcoming Preliminary Feasibility Study will be a key indicator of the project’s viability and could set the stage for further investment and development decisions.