Canterbury Resources Launches $0.75M Share Purchase Plan at 9.1% Discount
Canterbury Resources has announced a non-underwritten Share Purchase Plan aiming to raise approximately $0.75 million at a 9.1% discount to recent trading prices, supporting exploration and working capital needs.
- Non-underwritten Share Purchase Plan targeting $0.75 million
- Shares offered at 2.0 cents, a 9.1% discount to 5-day VWAP
- Eligible shareholders can apply for up to $30,000 worth of shares
- Funds earmarked for exploration at Jack Shay and Peenam projects
- Directors intend to participate, with potential to raise up to $1.2 million
Capital Raising Initiative
Canterbury Resources Limited (ASX – CBY) has unveiled a new capital raising effort through a non-underwritten Share Purchase Plan (SPP). The company aims to raise approximately $0.75 million by issuing new shares at 2.0 cents each, representing a 9.1% discount to the recent five-day volume weighted average price (VWAP) of 2.2 cents. This move provides existing shareholders in Australia, New Zealand, Papua New Guinea, Canada, and the UK the opportunity to increase their stake without brokerage fees.
Participation and Terms
Eligible shareholders as of 7 – 00 pm AEST on 20 August 2025 can apply for up to $30,000 worth of shares. The SPP opens on 27 August and closes on 23 September 2025. While the plan is not underwritten, the company reserves the right to accept oversubscriptions up to $1.2 million or scale back applications to manage the final amount raised. Shares issued will rank equally with existing shares and will not affect the company’s placement capacity.
Use of Funds and Project Focus
The capital raised will primarily support project generation and exploration activities at the Jack Shay and Peenam projects in Queensland, alongside general working capital needs. Exploration and evaluation at other key projects; Briggs in Queensland, and Bismarck and Morobe in Papua New Guinea; are funded through joint venture partners under earn-in agreements, reducing Canterbury’s direct capital outlay.
Strategic Outlook
Managing Director Grant Craighead highlighted the significance of this period for Canterbury, particularly with the Briggs Copper Project nearing completion of a Scoping Study aimed at evaluating a large-scale, long-life mining operation. The SPP proceeds will help maintain momentum across the company’s portfolio, which includes partnerships with notable players such as Alma Metals and Rio Tinto.
Next Steps and Market Impact
The company has lodged the necessary regulatory documents and plans to announce the results of the SPP by the end of September, with new shares expected to commence trading in early October. Directors and related parties have signaled their intention to participate, which may be viewed positively by the market. However, the non-underwritten nature of the plan introduces some uncertainty regarding the final capital raised.
Bottom Line?
Canterbury’s SPP sets the stage for accelerated exploration, but the final capital raised will be a key market focus.
Questions in the middle?
- Will the SPP reach or exceed its $0.75 million target given it is non-underwritten?
- How will the additional funds impact the timeline and scope of the Briggs Scoping Study?
- What are the implications if the company scales back applications or increases the SPP size?
