Coda Minerals has successfully closed an oversubscribed $8.3 million entitlement offer, securing strong shareholder backing to fast-track drilling and pre-feasibility studies at its Elizabeth Creek Copper-Silver Project.
- Entitlement offer oversubscribed, raising $8.3 million fully underwritten
- Applications exceeded $11.6 million from approximately 950 shareholders
- Funds to advance pre-feasibility studies and drilling at Elizabeth Creek
- Company to hold approximately $9.8 million cash post-offer
- Drill rigs mobilised with site preparations underway
Strong Capital Raise Amid Rising Copper and Silver Prices
Coda Minerals Limited (ASX – COD) has announced the successful completion of its fully underwritten entitlement offer, which raised the maximum $8.3 million contemplated under its September 2025 prospectus. The offer was notably oversubscribed, with applications totaling $11.6 million from around 950 existing shareholders, reflecting robust investor confidence in the company’s flagship Elizabeth Creek Copper-Silver Project in South Australia.
The oversubscription necessitated scale-backs on shortfall applications, but ultimately strengthened Coda’s shareholder register and balance sheet. Post-offer, the company expects to hold approximately $9.8 million in cash, providing a solid financial runway to accelerate project development.
Advancing Pre-Feasibility and Drilling Activities
With funds secured, Coda is mobilising drill rigs and has commenced site preparation work at Elizabeth Creek. The capital injection will underpin critical pre-feasibility studies aimed at refining the project’s development pathway. This phase is pivotal for Coda as it seeks to unlock the value of its 100%-owned copper and silver assets within the Olympic copper province.
Chairman Keith Jones highlighted the strategic timing of the raise, noting that recent flowsheet changes have positioned the project to benefit from rising copper and silver prices. He pointed out that project economics were last modelled at US$9,260 per tonne for copper and US$30 per ounce for silver, whereas current spot prices have surged to over US$10,600 per tonne and US$51 per ounce respectively. This market backdrop enhances the project’s potential attractiveness to investors and partners alike.
Market Context and Strategic Outlook
The oversubscribed raise comes amid a tightening landscape for copper-focused companies on the ASX, coupled with increased merger and acquisition activity in the sector. Coda’s strengthened financial position and advancing technical work could position it well for future strategic opportunities. The company’s management expressed gratitude to shareholders and advisors for their support, underscoring the collective momentum behind the project’s next development stages.
While the entitlement offer’s success is a clear positive, the company has yet to provide detailed timelines for drilling results or pre-feasibility study completion. Investors will be watching closely for updates that could validate the project’s economic potential and inform subsequent development decisions.
Bottom Line?
Coda’s oversubscribed raise and drilling commencement mark a decisive step forward, but market watchers await tangible results to confirm the project’s promise.
Questions in the middle?
- When will initial drilling results from Elizabeth Creek be released?
- How will rising copper and silver prices impact the project’s feasibility outcomes?
- Could Coda’s strengthened position attract potential partners or acquisition interest?