Cannindah Resources has announced a two-tranche placement raising approximately $15 million and a concurrent Share Purchase Plan offering eligible shareholders the chance to invest up to $30,000 at a discounted price. The funds will support drilling and exploration at the Mt Cannindah Copper-Gold Project.
- Two-tranche placement raising $15 million at $0.045 per share
- First tranche of 246 million shares issued immediately, second tranche subject to shareholder approval
- Share Purchase Plan offers up to $30,000 worth of shares at same discounted price
- Funds targeted for drilling and exploration at Mt Cannindah Copper-Gold Project
- Share Purchase Plan aims to raise up to $2 million with potential scale-back
Capital Raising Overview
Cannindah Resources Limited (ASX, CAE) has unveiled a significant capital raising initiative comprising a two-tranche placement and a Share Purchase Plan (SPP). The placement will issue a total of 333 million shares at $0.045 each, raising approximately $15 million. The first tranche, involving 246 million shares, is set to be issued immediately under existing placement capacity, while the second tranche of 87 million shares awaits shareholder approval at an upcoming Extraordinary General Meeting (EGM) expected in mid-March.
Share Purchase Plan Details
Alongside the placement, Cannindah is offering eligible shareholders in Australia and New Zealand the opportunity to participate in an SPP. This plan allows shareholders to purchase up to $30,000 worth of shares at the same discounted price of $0.045 per share, representing a 15.4% discount to the recent volume weighted average market price. The company aims to raise up to $2 million through the SPP, with the flexibility to accept oversubscriptions or scale back applications based on demand.
Use of Funds and Strategic Focus
The capital raised will be directed primarily towards advancing exploration activities at the Mt Cannindah Copper-Gold Project. Key initiatives include reverse circulation drilling to expand the existing copper-gold breccia deposit, currently estimated at 14.5 million tonnes at 1.09% copper equivalent, and diamond drilling to follow up on recently identified high-grade mineralisation at the Southern Porphyry Target. Additional funds will support broader exploration and development efforts at Mt Cannindah, as well as general working capital requirements.
Shareholder Participation and Conditions
Participation in the SPP is optional and limited to shareholders registered by 5, 00pm (WST) on 2 February 2026 with addresses in Australia or New Zealand. The offer excludes shareholders in other jurisdictions due to regulatory restrictions. The plan is non-underwritten, and the company reserves the right to scale back applications equitably if demand exceeds the target raise. Directors who are eligible shareholders may also participate subject to ASX rules.
Next Steps and Market Implications
The first tranche of the placement is expected to settle imminently, with shares issued on 9 February 2026. The EGM to approve the second tranche will be held in mid-March, with settlement shortly thereafter. Shareholders are encouraged to consider the offer carefully, noting that share prices may fluctuate between the announcement and issuance dates. The capital raising positions Cannindah to accelerate its exploration program, potentially enhancing the value of its Mt Cannindah assets as drilling results emerge.
Bottom Line?
Cannindah’s capital raise sets the stage for intensified exploration, but shareholder approval and SPP uptake remain key to unlocking full funding.
Questions in the middle?
- Will shareholders approve the second tranche of the placement at the upcoming EGM?
- How will the market respond to the dilution from the placement and SPP?
- What early results can investors expect from the upcoming drilling programs at Mt Cannindah?