The funding is comprised of two elements, executed simultaneously:
- A $1.0 million share placement to sophisticated and professional investors through the issue of 22,844,444 new fully-paid ordinary shares at $0.045 per share and 7,614,815 free-attaching unlisted options exercisable at 0.08 per share, with an expiry 36 months from issue date.
- A Placement Agreement (the Placement Agreement) with Lind Global Fund, an institutional fund managed by The Lind Partners. The first $1.5 million in investment proceeds under the Placement Agreement will be drawn within 5 business days. A further $4.5 million is available if mutually agreed by the parties.
Proceeds will be primarily used for working capital as follows:
- Advancing the Kwinana Cobalt Refinery towards FID
- Development of a PFS program for the Halls Creek copper-zinc-silver Project.
- Finalise obligations to American Rare Earths Limited, former JV partner in Broken Hill Cobalt Project
- Evaluation of black mass processing at the Broken Hill Technology Centre
CEO Dr. Andrew Tong said: “This funding package provides immediate capital to close the promissory note, strengthen our financial position and support our key initiatives of advancing the Kwinana Cobalt Refinery towards FID, and development of an exploration program for the Halls Creek copper-zinc-silver Project. We appreciate the confidence of both existing and new shareholders.
The structure of this package is a valuable strategy to allow COB to pursue key milestones with confidence while preserving optionality around future capital needs. After evaluating a range of funding options, this package was selected due to its ability to balance our immediate funding needs with our commitment to maximising long-term shareholder value.”