How Will Cobalt Blue’s $5.3M Raise Accelerate Its Refinery and Mining Ambitions?

Capital Raise Strengthens Strategic Position

Cobalt Blue Holdings Limited (ASX – COB) has successfully secured firm commitments to raise $5.3 million through a placement of over 59 million new shares priced at $0.09 each. This price represents a 14.3% discount to the company's last traded share price, reflecting a strategic move to attract both domestic and international institutional investors. The capital injection is designed to underpin key development milestones across Cobalt Blue’s flagship projects.

Advancing the Kwinana Cobalt Refinery

A significant portion of the proceeds will be directed towards advancing the Kwinana Cobalt Refinery (KCR) to its Final Investment Decision (FID). The KCR is poised to become Australia’s first dedicated cobalt refinery, producing high-purity cobalt sulphate for lithium-ion batteries and high-grade cobalt metal for industrial and defense applications. Progressing to FID will involve converting non-binding offtake letters of intent into binding agreements and consolidating project finance support, critical steps to de-risk the refinery’s development.

Innovation at Broken Hill Technology Centre

Another focus for the raised funds is the evaluation of black mass processing at the Broken Hill Technology Centre. Black mass, a valuable feedstock derived from recycled lithium-ion batteries, represents a potential domestic source of cobalt feedstock for the Kwinana Refinery. This initiative aligns with Cobalt Blue’s strategy to diversify supply chains and enhance sustainability in cobalt production.

Progressing the Broken Hill Cobalt Project

The capital raise will also support further advancement of the Broken Hill Cobalt Project’s permitting process. Recognized as one of the world’s largest undeveloped cobalt resources, the project recently received a three-year extension to its Major Project Status, underscoring its strategic importance. Moving through permitting is essential to unlocking the project’s full potential and positioning Australia as a critical minerals powerhouse.

Shareholder Approval and Future Funding Potential

Alongside the new shares, Cobalt Blue will issue unlisted placement options exercisable at $0.115 per share, expiring in December 2027, subject to shareholder approval at an upcoming general meeting. These options offer potential future funding if exercised, providing additional financial flexibility. Joint Lead Managers Pamplona Capital and Bell Potter Securities will also receive options as part of their fee arrangement, aligning their interests with the company’s growth trajectory.

CEO Dr. Andrew Tong expressed confidence that this funding round strengthens the company’s financial position and provides a clear runway to pursue its key initiatives into 2026. The successful placement also brings new international institutional investors on board, signaling growing confidence in Cobalt Blue’s strategy and projects.