Cobre Limited (ASX: CBE) today announced the successful completion of a significant A$90 million two-tranche placement, marking a pivotal moment for the mineral exploration and development company focused on copper projects in Chile and Botswana. The capital injection is primarily aimed at fast-tracking production and exploration activities at its Sierra Atacama Copper Mine, alongside increasing its ownership in the project. The placement garnered strong support from both new and existing institutional, sophisticated, and professional investors, including a number of global resources specialist investors based domestically and offshore.
The placement comprised approximately 300 million new fully paid ordinary shares at an issue price of A$0.30 per share. Tranche 1, raising approximately A$72 million, utilised the company’s existing placement capacity. Tranche 2, raising the remaining A$18 million via approximately 60 million new shares, is subject to shareholder approval at an Extraordinary General Meeting anticipated for late August/early September 2026. This issue price represents a 9.1% discount to the last close price on 6 July 2026 and an 8.6% discount to the 10-day Volume Weighted Average Price. Major shareholders Tribeca Investment Partners (A$20 million) and Strata Investment Holdings Plc (A$8 million) cornerstoned the raise, with the Board of Directors also participating for A$200,000, subject to shareholder approval.
The funds raised, combined with existing cash reserves, will be strategically deployed across several key initiatives. A substantial portion will be allocated to increasing Cobre’s ownership in the Sierra Atacama Project, alongside debt repayment. Significant investments are also earmarked for plant upgrades, development costs, and extensive exploration activities at Sierra Atacama, including resource drilling, near-mine exploration, and high-grade sulphide drilling. Additionally, funds will support activities at the Botswana Projects, general working capital, corporate costs, and contingencies. Executive Chairman Martin Holland commented, “This $90m capital raise marks a transformational milestone for Cobre as the Company moves toward becoming a mid-tier Copper producer.”
