en.Wedoany.com Reported - Cobre Ltd (ASX:CBE) has completed an A$90 million placement, with the proceeds to be used to increase its equity in the Sierra Atacama copper project in Chile and accelerate production, development, and exploration activities.
The placement issued approximately 300 million new shares to institutional, sophisticated, and professional investors at an issue price of A$0.30 per share. The placement was completed in two tranches, with the first tranche raising approximately A$72 million and the second tranche expected to raise approximately A$18 million, subject to shareholder approval. Cobre's major shareholder, Tribeca Investment Partners, subscribed for A$20 million, and Strata Investment Holdings PLC (ASX:SRT) subscribed for A$8 million, providing cornerstone investments for the placement. The company's board also committed to participating with A$200,000, which, along with Strata's participation, is subject to shareholder approval under ASX Listing Rule 10.11 at an upcoming extraordinary general meeting.
The raised funds, together with existing cash, will be allocated to several areas. Of this, A$29 million is planned for plant upgrades to a monthly processing capacity of 1,500 tonnes and other Sierra Atacama project development costs, A$26 million for debt repayment, A$17 million to increase project ownership, and another A$17 million for exploration activities including resource drilling, near-mine drilling, and high-grade sulphide drilling. Additionally, A$4 million has been allocated for activities at its Botswana project, with the remaining funds to be used for working capital, corporate costs, and offering expenses.
Executive Chairman Martin Holland stated that this funding round marks a transformational milestone for Cobre as the company moves towards becoming a mid-tier copper producer. He noted that the company is increasing its exposure to this emerging copper district in Chile, the home of copper, while also strengthening its balance sheet and funding the next phase of growth.
The placement price of A$0.30 per share represents a 9.1% discount to Cobre's last closing price of A$0.33 on July 6, 2026, and an 8.6% discount to the 10-day volume-weighted average price of A$0.328. The new shares issued under the placement will rank equally with existing ordinary shares.
Canaccord Genuity (TSX:CF, LSE:CF) acted as lead underwriter for the placement, Euroz Hartleys as co-manager, and CPS Capital as placement broker.
