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Highlights
- Cannindah Resources has received firm commitments to raise AUD 15 million through a two-tranche placement at an offer price of AUD 0.045 per share.
- The company plans a Share Purchase Plan for ~AUD 2 million.
- Following the placement, Cannindah is expected to hold a cash balance of around AUD 16 million before costs.
- Proceeds will be directed towards RC drilling to expand the Mt Cannindah Copper-Gold Breccia Resource.
- Diamond drilling at the Southern Porphyry Copper-Gold Target is planned to commence in approximately four weeks.
Cannindah Resources Limited (ASX:CAE) has received firm commitments for a capital raise of AUD 15 million through a two-tranche placement to institutional and sophisticated investors. Additionally, the company plans to launch a AUD 2 million Share Purchase Plan (SPP) for existing shareholders. Together, SPP and placement are expected to raise approximately AUD 17 million, before costs.
The capital raising comes ahead of drilling campaigns at the Mt Cannindah Copper-Gold Project in Western Australia.
Capital Raising Details
The two-tranche placement covers an initial AUD 11.075 million tranche to be issued under the company’s existing placement capacity, and a second AUD 3.925 million tranche, subject to shareholder approval. Directors will participate in the second tranche to the value of AUD 0.225 million.
The company has received a commitment from ASX-listed Lion Selection Group Limited for AUD 2 million as part of the placement. As a result of this investment, Lion is expected to take a 3.3% stake in the company.
Offer price of the placement is AUD 0.045 per share and is expected to provide the company with a cash balance of approximately AUD 16 million before costs. The offer price represents a 15.4% discount to the 5-day volume-weighted average price and a 9.7% discount to the 15-day VWAP.
In parallel, the SPP targets AUD 2 million in subscriptions from existing shareholders at the same price, allowing participation of up to AUD 30,000 per shareholder.
Use of Proceeds from Capital Raise
Proceeds from the placement and SPP will assist in accelerating RC drilling program to expand the Mt Cannindah Mineral Resource, currently estimated at 14.5 million tonnes at 1.09% CuEq. Reverse circulation drilling will resume within the next week.
Meanwhile, diamond drilling will target the recently identified mineralisation at the Southern Porphyry Copper-Gold area, and it is expected to restart within a month. Additional exploration activities will be undertaken across the broader Mt Cannindah Project.
Shareholder Participation and Timetable
Existing shareholders can subscribe to the SPP at the same AUD 0.045 per share price. The SPP opens on 6 February and closes on 20 February, with trading of new shares expected from 25 February 2026. Settlement of tranche one of the placement is scheduled for 6 February, with shares to be issued and commence trading on 9 February. Tranche two is contingent on shareholder approval at an extraordinary general meeting expected in mid-March, with settlement and trading expected shortly thereafter.
CAE shares were trading at AUD 0.050 per share at the time of writing on 3 February 2026.
