Central Iron Ore Targets $2.89M Raise via Rights Offering at $0.072 per Unit
Central Iron Ore Limited has announced a rights offering to raise up to $2.89 million, aiming to support its South Darlot joint venture, advance drilling at British King Mine, and repay a loan to majority shareholder Gullewa Limited.
- Rights offering priced at $0.072 per unit including one share and one warrant
- Warrants exercisable at $0.12 until October 2030, transferable but unlisted
- Gross proceeds targeted at approximately $2.89 million
- Funds allocated to South Darlot JV, British King Mine drilling, loan repayment, and working capital
- Offering subject to TSX Venture Exchange approval, expires January 21, 2026
Rights Offering Details and Structure
Central Iron Ore Limited (TSXV, CIO), in which Gullewa Limited holds a controlling 57.64% stake, has announced a rights offering to its ordinary shareholders as of December 23, 2025. Shareholders will be entitled to one right for each share held, allowing them to subscribe for new units at a price of $0.072 per unit. Each unit comprises one ordinary share and one warrant, with the warrants exercisable at $0.12 per share until October 15, 2030. While the rights and warrants will not be listed on any exchange, they remain transferable, providing some liquidity options for investors.
Capital Raising Objectives
The company aims to raise up to approximately $2.89 million in gross proceeds through this offering. The funds are earmarked for several strategic purposes, contributing to the South Darlot joint venture, advancing drilling activities at the British King Mine Area, partially repaying a loan owed to Gullewa Limited, and supporting general corporate and working capital needs. These initiatives underscore Central Iron Ore’s focus on advancing its iron ore assets and strengthening its financial position.
Shareholder Impact and Regulatory Considerations
Currently, Central Iron Ore has 40,155,734 shares outstanding. If all rights are exercised in full, the share count will double to 80,311,468, resulting in significant dilution for existing shareholders who do not participate. The offering is subject to final regulatory approval from the TSX Venture Exchange and will expire on January 21, 2026. Shareholders outside Canada, Australia, and New Zealand may face eligibility restrictions, with the company providing guidance on participation for ineligible shareholders.
Market and Strategic Implications
This rights offering represents a critical capital injection for Central Iron Ore at a time when iron ore markets remain volatile. The inclusion of warrants with a long exercise period offers investors potential upside if the company’s share price appreciates. Meanwhile, the partial loan repayment to Gullewa Limited, the majority shareholder, may improve the company’s balance sheet and reduce related-party financial risk. However, the success of the offering depends on shareholder uptake and regulatory approval, factors that will be closely watched by the market.
Next Steps for Investors
Eligible shareholders will receive detailed offering materials around December 30, 2025, with instructions on how to exercise their rights. The company’s management, including insiders, may participate but are not obligated to do so. Investors will be keen to monitor subscription levels and subsequent project developments, which will provide clearer signals on Central Iron Ore’s operational momentum and financial health.
Bottom Line?
Central Iron Ore’s rights offering sets the stage for a pivotal funding round that could accelerate project development but also significantly reshape its shareholder base.
Questions in the middle?
- Will shareholders fully subscribe to the rights offering or will dilution concerns limit participation?
- How will the funds raised impact progress at South Darlot and British King Mine in the near term?
- What are the implications of the partial loan repayment to Gullewa Limited on the company’s financial stability?
