Cobre aims to raise $1.18 million via loyalty options with $0.066 exercise price

Overview of the Loyalty Options Offer

Cobre Limited has launched a fully underwritten loyalty options offer aimed at raising approximately $1.18 million before costs. Eligible shareholders are invited to subscribe for one new option for every three shares held as of the record date, at an offer price of $0.008 per option. Each new option will have an exercise price of $0.066 and will expire on 21 November 2028.

The offer is non-renounceable, meaning entitlements cannot be traded or transferred, and is fully underwritten by CPS Capital Group Pty Ltd, ensuring the company will raise the targeted funds regardless of shareholder uptake.

Purpose and Use of Funds

The proceeds from the loyalty options offer are intended primarily to cover the costs associated with the offer itself and to provide general working capital for Cobre Limited. This capital injection comes at a critical time as the company continues its exploration and development activities across its copper projects, including Ngami, Perrinvale, Comet, and Kitlanya West.

While the company does not anticipate immediate dilution from the offer, shareholders who do not participate may see their holdings diluted if options are exercised subsequently.

Offer Mechanics and Timetable

The offer opens on 30 June 2025 and closes at 5, 00pm AEST on 30 July 2025. Following the close, results will be announced on 4 August 2025, with new options expected to be issued and quoted on the ASX shortly thereafter, subject to ASX approval. The company has outlined a detailed timetable, including the underwriting arrangements and broker options allocation.

Eligible shareholders are those registered on the company’s share register at 7, 00pm AEST on 25 June 2025, with registered addresses in Australia, New Zealand, South Africa, or the United Kingdom. The offer is not extended to shareholders outside these jurisdictions due to regulatory constraints.

Risks and Considerations

The prospectus highlights several risks inherent to investing in exploration companies like Cobre Limited. These include exploration and development risks, potential dilution from future capital raisings, reliance on key personnel, and regulatory and environmental compliance challenges. The speculative nature of the investment is emphasized, with no guarantees on future performance or returns.

Investors are advised to carefully consider these risks and seek professional advice before participating in the offer.

Corporate Governance and Shareholder Impact

The company discloses its substantial shareholders, with Strata Investment Holdings plc currently holding over 20% of shares. The loyalty options offer is not expected to alter control of the company materially. Directors and key management interests are detailed, with no new remuneration arrangements linked to the offer.

Cobre Limited continues to maintain its commitment to transparency and compliance, with continuous disclosure obligations and a comprehensive legal framework governing the offer.