Coda’s $8.33m Capital Raise Could Dilute Shareholders Amid Key Project Milestone
Coda Minerals has announced a fully underwritten $8.33 million entitlement offer to fund the pre-feasibility study of its Elizabeth Creek Copper-Silver Project, offering shareholders a discounted entry price with attaching options.
- Fully underwritten $8.33 million entitlement offer at $0.10 per share
- Shareholders eligible for one new share per three held plus attaching options
- Funds targeted at advancing Elizabeth Creek pre-feasibility study and project development
- Offer supported by major shareholders and institutional investors
- Directors intend to participate, signaling confidence in project progress
Capital Raise to Propel Key Project Milestone
Coda Minerals Ltd (ASX – COD) has launched a non-renounceable entitlement offer to raise up to A$8.33 million, fully underwritten by Leeuwin Wealth Pty Ltd. The offer, priced at $0.10 per new share, represents a notable discount of over 20% to recent trading prices, providing existing shareholders an attractive opportunity to increase their holdings.
The funds raised will be directed primarily towards advancing the pre-feasibility study (PFS) of the Elizabeth Creek Copper-Silver Project in South Australia. This stage is critical in refining the project’s economics and operational plans, with recent changes to the processing flowsheet enhancing copper and silver recoveries and reducing project risk.
Shareholder Incentives and Underwriting Support
Eligible shareholders can subscribe for one new share for every three shares held, with the added incentive of receiving one attaching option for every four new shares subscribed. These options, exercisable at $0.15 until March 2029, offer potential upside participation as the project progresses.
The entitlement offer is fully underwritten by Leeuwin Wealth, supported by existing major shareholders and new institutional investors, underscoring confidence in the project’s prospects. Directors have also committed to participate, subscribing for approximately 2 million new shares, signaling alignment with shareholder interests.
Strategic Focus and Future Catalysts
Coda’s Chair, Keith Jones, highlighted the strategic importance of this capital raise, noting that the revised copper-silver focused base case strengthens the project’s foundation by positioning cobalt as an upside rather than a dependency. The funds will support a catalyst-rich program including cobalt reintegration, mine plan optimisation, and targeted exploration drilling aimed at unlocking further value.
The company plans to lodge the prospectus with ASIC imminently, with the offer expected to open on 23 September and close on 16 October 2025. The non-renounceable nature of the offer means shareholders cannot trade their entitlements, emphasizing the need for timely participation.
With the PFS as a pivotal milestone on the path to commercialisation, Coda Minerals is positioning itself to deliver a clearer, more resilient project outlook that could attract further investment and development interest.
Bottom Line?
Coda’s fully underwritten raise sets the stage for a decisive phase in Elizabeth Creek’s development, but shareholder uptake and execution of the PFS will be key to watch.
Questions in the middle?
- Will shareholder participation meet expectations given the non-renounceable structure?
- How will the revised processing flowsheet impact project timelines and costs?
- What are the prospects for cobalt reintegration to add value beyond the base case?
