29Metals Limited has initiated a fully underwritten $150 million entitlement offer at $0.40 per share, aiming to bolster its growth projects and operational recovery following seismic disruptions. The retail offer opens on 28 January and closes on 11 February 2026.
- Fully underwritten 1 for 3.66 entitlement offer at $0.40 per new share
- Institutional component raised approximately $119 million
- Retail component expected to raise around $31 million
- Proceeds to support Gossan Valley investment, Capricorn Copper restart study, and exploration drilling
- Major shareholders BUMA and AustralianSuper committed to participate; BUMA may increase stake to 25.8%
Context and Rationale
29Metals Limited (ASX, 29M) has launched a significant capital raising initiative through a fully underwritten accelerated non-renounceable entitlement offer to raise approximately $150 million. The offer price of $0.40 per new share represents a substantial discount to recent trading prices, reflecting the company's current operational challenges and the need to secure liquidity to fund its strategic growth plans.
The equity raising is split into an institutional component, which successfully closed on 20 January 2026 raising about $119 million, and a retail component expected to raise $31 million, opening on 28 January and closing on 11 February 2026. Eligible retail shareholders in Australia and New Zealand are invited to participate on the same terms as institutional investors.
Use of Proceeds and Operational Update
Proceeds from the entitlement offer will primarily address working capital needs arising from seismic events at the Xantho Extended mine, which have disrupted production and restricted access to high-grade ore. The company plans to recommence mining at Xantho Extended in April 2026, with ground support upgrades underway to mitigate seismic risks.
Additionally, funds will support ongoing investment in the Gossan Valley project, which remains on track for $112 million in capital expenditure to first ore by the end of 2026. The equity raising will also finance the progression of a Restart Definitive Feasibility Study at Capricorn Copper, where operations have been suspended since March 2024 due to extreme weather and regulatory challenges. Exploration drilling across the portfolio will continue to test priority targets, underpinning 29Metals’ growth ambitions.
Shareholder Participation and Underwriting
Major shareholders BUMA and AustralianSuper have committed to fully participate in the entitlement offer, subscribing for $29.2 million and $26.8 million respectively. BUMA has also agreed to sub-underwrite any shortfall up to $41.5 million, potentially increasing its stake in 29Metals to approximately 25.8% post-completion.
The offer is fully underwritten by Macquarie Capital (Australia) Limited, with Morgans Corporate Limited acting as joint lead managers. The entitlement offer is non-renounceable, meaning entitlements cannot be traded or transferred, and shareholders who do not participate will experience dilution of their holdings.
Risks and Considerations
29Metals’ announcement includes detailed disclosures on risks, including commodity price volatility, regulatory approvals, underground mining hazards, and operational disruptions from seismicity and extreme weather. The restart of Capricorn Copper remains contingent on regulatory approvals for tailings storage facilities and successful water management during the wet season.
Investors should also consider the dilution impact of the entitlement offer and the uncertainty around the final retail subscription and shortfall allocation. The company’s ability to execute its growth plans depends on securing the necessary funding and navigating operational and regulatory challenges.
Bottom Line?
As 29Metals embarks on this critical capital raise, the market will closely watch retail uptake and progress on Capricorn Copper’s restart, with implications for shareholder value and operational momentum.
Questions in the middle?
- Will retail shareholders fully subscribe to the entitlement offer, or will BUMA increase its stake via shortfall acquisition?
- How swiftly can 29Metals secure regulatory approvals to restart Capricorn Copper operations?
- What impact will ongoing seismicity at Xantho Extended have on production and project timelines?