Clara’s Capital Raise Hinges on Shareholder Nod for Director Equity Conversion

Successful Capital Raise Completes Rights Issue

Clara Resources Australia Limited (ASX – C7A) has announced the successful placement of approximately 302.2 million shares that remained unsubscribed following its recent 1-for-2 pro-rata non-renounceable rights issue. Priced at a modest $0.003 per share, this shortfall placement has raised close to $0.907 million before costs, providing a much-needed capital injection for the company.

The placement was conducted under the terms of an underwriting agreement with Sophisticated Capital Pty Ltd and managed by Cerberus Advisory, which oversaw a well-supported bookbuild involving sophisticated and professional investors. This outcome reflects a solid vote of confidence from the market in Clara’s strategic direction.

Funding to Accelerate Ashford Project and Explore New Opportunities

The funds raised from this placement, combined with proceeds from the original rights issue, will be directed towards advancing Clara’s flagship Ashford Coking Coal Project. This project remains central to the company’s growth ambitions, aiming to capitalise on the ongoing demand for coking coal in steel production.

Additionally, Clara intends to leverage the fresh capital to pursue new value accretive opportunities, signaling a proactive approach to expanding its portfolio and enhancing shareholder value beyond the Ashford project.

Director Equity Conversion Signals Alignment

In a move that underscores management’s commitment, Chairman Richard Willson has agreed to convert $40,000 of outstanding director fees into equity at the same issue price of $0.003 per share. This conversion, subject to shareholder approval at a forthcoming general meeting, will see the issuance of over 13 million new shares, further aligning the board’s interests with those of shareholders.

Clara’s Managing Director, Peter Westerhuis, expressed satisfaction with the strong support for the capital raising, highlighting it as a clear endorsement of the company’s strategy and a vital enabler for accelerating project development.

Next Steps and Market Implications

The new shares from the shortfall placement are expected to be allotted on 2 December 2025, ranking equally with existing shares. Investors will be watching closely for updates on the Ashford project’s progress and the outcome of the shareholder vote on the director fee conversion.

While the capital raise provides Clara with a solid financial footing, the company’s ability to translate this funding into tangible project milestones and new opportunities will be critical in sustaining investor confidence and driving share price momentum.