CuFe Ltd (ASX: CUF), an emerging copper and iron ore company focused on near-term, high-grade premium product iron ore projects and exposure to copper, has announced it has secured commitments to raise $5.4 million before costs. The funds will be raised through the issue of 318 million shares at 1.7 cents per share, along with one free-attaching unlisted option for every two shares, exercisable at 5 cents and expiring on 30 November 2027. The issue price represents the Company’s last closing price and a 9% premium to the 5-day VWAP.
The strategic private placement attracted four key participants, including Mr. Mathew August, an investor focused on the Critical Minerals and Strategic Defence Department sector, as well as a leading institutional investment fund and two high-net-worth investors from North America and Australia. The company believes this strengthens its share register with long-only strategic investors aligned with CuFe’s vision and corporate execution strategy.
The raised capital will be primarily allocated to ongoing exploration and feasibility work at the company’s flagship Tennant Creek Copper/Gold project. This includes improving the Gecko resources classification, underground mine planning, and further evaluating the Bismuth resource potential. The company also intends to allocate funds to its exploration portfolio in Western Australia and the Northern Territory, targeting Niobium and Copper in the West Arunta, gold in the Pilbara, Bryah and Yilgarn regions, and iron ore near its Yarram deposit.
CuFe Executive Director Mark Hancock expressed his pleasure in securing the new capital, noting it will allow the team to continue their work at Tennant Creek, where the resource has grown significantly. He also thanked the new investors for their participation and affirmed the company’s commitment to growing value for both new and existing shareholders. A fee of 6.0% is payable to the financial consultant of the placement Atlas Capital Group II LLC. The company intends to seek shareholder approval for the placement options at its upcoming Annual General Meeting.
