- Cobalt Blue (COB) receives firm commitments for a two-tranche $15 million capital raise to fund development at the Broken Hill Cobalt Project in NSW
- COB will issue 50 million shares to investors at 30 cents each, representing a 15 per cent discount to the 30-day volume-weighted average price
- The company will also issue 25 million free-attaching options, exercisable at 45 cents each on or before June 15
- Shares in Cobalt Blue have dipped 6.9 per cent to 33.5 cents at 1:00 pm AEST
Cobalt Blue (COB) has received firm commitments to raise $15 million via a two-tranche share placement to fund development at its Broken Hill Cobalt Project in New South Wales.
Through the placement, COB will issue 50 million new, fully paid ordinary shares, priced at 30 cents each, to institutional, sophisticated and professional investors.
This issue price represents a 15 per cent discount to the company's 30-day volume-weighted average price.
Further, as part of the transaction, the company will issue 25 million free-attaching options to investors, exercisable at 45 cents each on or before August 15.
Cobalt expects to settle the first tranche by around June 18 to raise roughly $7.8 million, with the second tranche slated to raise the remaining $7.2 million, before costs, subject to gaining shareholder approval at a general meeting in August.
"We welcome a number of highly-regarded domestic and international institutional investors onto the Cobalt Blue register in what was a strongly-supported capital raising that will fund the continued development of the Broken Hill Cobalt Project," Cobalt Blue CEO Joe Kaderavek said.
In line with earlier guidance, the company expects to complete its entire pilot plant sample program over the next few weeks, with a summary report to follow.
COB projects the placement will permit the company's transition to a larger-scale demonstration plant and advance feasibility studies at the Broken Hill project.
The proceeds will also bolster geological and site activities, approvals and permits, tenement acquisitions, partner and financing investigations and working capital.
Looking ahead, in the event that all options under the placement were exercised, COB said it would raise a further $11.25 million for project development and working capital purposes.
Shares in Cobalt Blue dipped 6.9 per cent to 33.5 cents at 1:00 pm AEST.