Oversubscribed SPP Brings Dilution Risk Amid Exploration Push
Canterbury Resources has successfully closed an oversubscribed Share Purchase Plan, raising $1.24 million to advance its copper-gold exploration projects across Australia and Papua New Guinea.
- Share Purchase Plan raised $1.24 million, exceeding initial $0.75 million target
- 62.2 million new shares issued at $0.02 each with scale back applied
- Funds earmarked for exploration at Jack Shay, Peenam, and working capital
- Other projects funded by joint venture partners under earn-in agreements
- Scale back methodology aimed at equitable allocation among shareholders
Strong Shareholder Support Drives Capital Raise
Canterbury Resources Limited has announced the successful completion of its recent Share Purchase Plan (SPP), which closed on 22 October 2025. The company initially targeted raising approximately $750,000 but was met with overwhelming demand from eligible shareholders, resulting in a total raise of $1.24 million through the issue of over 62 million new shares at 2 cents each.
Scale Back Ensures Fair Allocation
Due to the oversubscription, Canterbury implemented a scale back policy to ensure equitable distribution of shares among applicants. Each shareholder’s subscription was reduced proportionally, with a maximum allocation capped at $30,000 per eligible participant. Excess funds from scaled-back applications are being refunded without interest, reflecting the company’s commitment to fairness and transparency.
Funding Exploration and Growth
The capital raised will be directed towards advancing exploration efforts at key projects such as Jack Shay and Peenam, both located in eastern Australia and Papua New Guinea. These projects represent significant opportunities in the copper-gold sector, a focus area for Canterbury. Meanwhile, exploration and evaluation at other assets including Briggs, Bismarck, and Morobe continue to be supported by joint venture partners through earn-in agreements, reducing the company’s capital expenditure burden.
Maintaining Momentum in a Competitive Sector
Managing Director Grant Craighead expressed gratitude to shareholders for their strong support, highlighting that the funds raised will help maintain momentum across Canterbury’s portfolio. The successful SPP underscores investor confidence in the company’s strategy and the potential of its projects. However, the dilution effect from the new shares will be a factor for existing shareholders to monitor as exploration results unfold.
Looking Ahead
With fresh capital secured, Canterbury is well-positioned to continue its exploration activities and potentially unlock value from its copper-gold assets. The company’s approach of leveraging joint ventures alongside direct funding may provide a balanced pathway to growth while managing risk.
Bottom Line?
Canterbury’s oversubscribed SPP sets the stage for accelerated exploration, but investors will watch closely for how dilution and project results impact value.
Questions in the middle?
- How will the scale back impact shareholder sentiment and future participation?
- What are the near-term exploration milestones for Jack Shay and Peenam?
- Could further capital raises be necessary if exploration results require expanded programs?
