Cobre Limited (ASX: CBE) has announced the successful completion of a two-tranche A$90 million placement, designed to fast-track production and exploration activities at its Sierra Atacama Copper Mine. Cobre Limited is an ASX-listed copper exploration and development company primarily focused on its projects in Chile and Botswana. The significant capital injection garnered strong support from both new and existing institutional, sophisticated, and professional investors, including a number of global resources specialist investors.
The placement involved the issue of approximately 300 million new fully paid ordinary shares at an issue price of A$0.30 per share. Tranche 1 raised approximately A$72 million through the issue of around 240 million new shares utilising the company’s existing placement capacity. Tranche 2, comprising approximately 60 million new shares to raise A$18 million, is subject to shareholder approval at an Extraordinary General Meeting anticipated in late August/early September 2026. The issue price represented a 9.1% discount to the last close price of A$0.33 on 6 July 2026, and an 8.6% discount to the 10-day Volume Weighted Average Price.
Funds raised, combined with existing cash, will be strategically applied to increase Cobre’s ownership in the Sierra Atacama Project, repay debt, and cover exploration and development costs at Sierra Atacama, including plant upgrades and drilling. A portion of the proceeds will also fund activities at the Botswana Projects, alongside general working capital, corporate costs, and offer expenses. The placement was notably cornerstoned by major shareholders Tribeca Investment Partners, subscribing for A$20 million, and Strata Investment Holdings Plc, for A$8 million, with the Board of Directors also participating for A$200,000, subject to shareholder approval.
Executive Chairman Martin Holland commented on the achievement, stating that the A$90 million capital raise marks a transformational milestone for Cobre as it moves towards becoming a mid-tier copper producer. He added that the company is strengthening its balance sheet and funding the next phase of growth, with production, exploration, and development all advancing in parallel. Canaccord Genuity (Australia) Limited acted as Lead Manager for the placement, with Euroz Hartleys Limited as Co-Manager and CPS Capital Pty Limited as Broker.
