Clara Raises $1.27M via Fully Underwritten Entitlement Offer at $0.003 per Share

Capital Raising Overview

Clara Resources Australia Limited (ASX, C7A) has initiated a pro-rata non-renounceable entitlement offer, inviting eligible shareholders to subscribe for new shares at an issue price of $0.003 each. The offer aims to raise approximately $1.27 million before costs by issuing up to 424 million new shares, representing one new share for every two shares held at the record date. This follows a recent placement that raised $315,000 through the issue of 105 million shares at the same price.

Use of Proceeds and Strategic Focus

The capital raised will primarily support drilling programs and project development initiatives at Clara’s Ashford Coking Coal project in New South Wales. Approximately 31% of the funds will be directed towards advancing a Preliminary Feasibility Study (PFS) for the project, with the remainder allocated to working capital and offer costs. The Ashford project remains central to Clara’s growth strategy, and this funding round is designed to underpin its next phase of development.

Underwriting and Shareholder Impact

The entitlement offer is fully underwritten by Sophisticated Capital Pty Ltd, which may acquire up to 33.33% voting power in the company depending on the take-up of entitlements by existing shareholders. The underwriting agreement includes fees and the issuance of options exercisable at $0.0045. Shareholders who do not participate in the offer face dilution of their holdings, with the placement already diluting interests by approximately 12.4%. The company has also established a shortfall facility allowing eligible shareholders to apply for additional shares beyond their entitlement, subject to availability.

Risks and Considerations

Clara’s announcement includes a comprehensive risk disclosure highlighting market volatility, economic conditions, legislative changes, and operational uncertainties inherent in mining exploration and development. Notably, the company underscores the speculative nature of the investment, potential dilution effects, and the possibility that the underwriter’s increased shareholding could influence corporate control. Environmental regulations, commodity price fluctuations, and the success of technical studies at Ashford are also flagged as key risk factors.

Next Steps for Shareholders

The entitlement offer opens on 29 October 2025 and closes on 7 November 2025, with the company reserving the right to extend the closing date. Eligible shareholders in Australia and New Zealand are encouraged to consider their participation carefully, as the offer is non-renounceable and entitlements cannot be traded. The company plans to apply for official quotation of the new shares on the ASX following allotment, with trading expected to commence by mid-November.