Cobre (ASX:CBE) to raise $6.7m for exploration in the Kalahari copper belt, Botswana

• Cobre (CBE) secures $5 million through a share placement to accelerate its exploration activities in the Kalahari copper belt in Botswana
• The company will issue roughly 33.3 million new shares at 15 cents to raise the funds — a 28.3 per cent discount to its 10-day volume-weighted average price
• Additionally, Cobre will launch a share purchase plan (SPP) for up to an additional $1 million with the same terms as the placement
• Cobre says it will use the extra cash to fund a “substantial” drilling program in 2023
• Shares in Cobre are down 8.82 per cent to 15.5 cents at 3:21 pm AEDT

Cobre (CBE) has secured $5 million through a share placement to accelerate its exploration activities in the Kalahari copper belt in Botswana.

The company said the placement was strongly supported by new and existing shareholders, including a number of “high-quality” institutional investors and the company’s largest shareholder, Metal Tiger.

Cobre will issue approximately 33.3 million new shares at 15 cents per share to raise the funds — a 28.3 per cent discount to its 10-day volume-weighted average price of 20.9 cents.

The company also plans to launch a share purchase plan (SPP) for up to an additional $1 million on the same terms as the placement.

The SPP will open on December 16 and close on January 17, 2023.

“With Cobre’s current $4 million in cash at bank, combined with the funds raised through this placement, Cobre will have a total of approximately $10 million that will be used to fund a substantial drill program, including two diamond drill rigs and one RC/AC drill rig onsite that will be drilling throughout 2023,” Executive Chairman Martin Holland said.

In addition to the placement, Cobre’s drilling service provider, Mitchell Drilling Botswana, and exploration services provider, Remote Exploration Services, have subscribed for
US$400,000 (A$595,000) and US$70,000, respectively, as part of their scrip-for-service arrangements.

As such, the total to be raised through the placement, the SPP, and scrip for services will be around $6.7 million, assuming full take-up of the SPP.

Shares in Cobre were down 8.82 per cent to 15.5 cents at 3:21 pm AEDT.