Core Energy Minerals has raised $2.75 million through a share placement to fund critical minerals exploration and the acquisition of the Itambe Rare Earth Project in Brazil, backed by strong institutional support.
- Placement of 275 million shares at $0.01 raising $2.75 million
- Substantial investments from shareholder Jose Luis Manzano and a new Swiss investor
- Funds earmarked for exploration in Brazil, South Australia, and Namibia
- Placement includes options subject to shareholder approval
- Lead manager GBA Capital to receive fees and options
Capital Raising Bolsters Exploration Ambitions
Core Energy Minerals Limited (ASX – CR3) has announced a $2.75 million capital raising through a placement of new shares priced at one cent each. This funding round is designed to accelerate the company’s exploration activities across its critical minerals portfolio, with a particular focus on the recently acquired Itambe Rare Earth Project in Brazil. The placement attracted strong backing from both existing shareholders and new institutional investors, signaling confidence in Core Energy’s strategic direction.
Key Investors and Strategic Support
Among the notable participants is Core Energy’s substantial shareholder, Jose Luis Manzano, founder and president of Integra Capital, who committed $720,000 to the placement, increasing his stake to 19%. Additionally, a new Swiss-based sophisticated investor contributed $1.32 million, also securing a 19% shareholding. This blend of support from seasoned investors underscores the market’s positive reception to Core Energy’s growth plans and management team.
Placement Structure and Shareholder Approvals
The placement is structured in two tranches, with the majority of shares to be issued under existing ASX listing rule capacities and shareholder approvals. Approximately 275 million shares will be issued at a 9% discount to the last traded price, accompanied by free-attaching options exercisable at $0.015 over three years, pending shareholder approval. Directors Chris Gale and Anthony Greenaway have also committed to participate, aligning management interests with shareholders.
Use of Funds and Future Outlook
Proceeds from the placement will fund exploration programs in South Australia, Brazil, and Namibia, support the acquisition of the Itambe Rare Earth Project, and cover general working capital and capital raising costs. The Itambe project, rich in rare earth elements, represents a strategic asset in Core Energy’s portfolio, positioning the company to capitalize on growing demand for critical minerals essential to clean energy technologies.
Market Implications and Next Steps
With the placement underway and shareholder meetings scheduled to approve the issuance of options and director participation shares, Core Energy is poised to strengthen its balance sheet and exploration capabilities. The involvement of high-profile investors and the planned expansion of its project footprint could enhance the company’s profile in the critical minerals sector, though the ultimate impact will depend on exploration success and market conditions.
Bottom Line?
Core Energy’s latest capital raise sets the stage for accelerated exploration, but shareholder approvals and project execution remain pivotal.
Questions in the middle?
- Will shareholder approval for the placement options and director participation be secured without issue?
- How will the new funds specifically accelerate development at the Itambe Rare Earth Project?
- What market response can be expected as Core Energy advances its exploration programs?