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Summary
- Cobalt Blue is excited to receive excellent response from investors for a $3.75 million placement, with demand significantly in excess of the funds that the Company sought to raise.
- Proceeds to fund the pilot plant completion, studies & permits for Broken Hill Cobalt Project and process towards executing a partnership for the project.
- Opportunity to subscribe for COB shares via a share placement plan announced at the same price as the placement.
Australian exploration and development company, Cobalt Blue Holdings Limited (ASX:COB) has announced to have received commitments for a placement raising $3,751,101 before costs from existing and new institutional and professional investors. Moreover, the Company announced a Share Purchase Plan (SPP), offering the opportunity to eligible existing shareholders to subscribe for COB shares.
Cobalt Blue has been progressing on extensive sampling programs using its proprietary pyrite ore processing method and the metallurgical testing of the final and intermediate products from the flagship Broken Hill Cobalt Project (BHCP).
Must Read: Major Breakthrough: Cobalt Blue Announces BHCP Testwork Achieving Battery Grade Cobalt Product
Cobalt Blue Received Strong Support from Investors for Placement
Cobalt Blue is excited to receive the overwhelming response from the investors, as the participation was significantly in excess of the funds that the Company had sought to raise.
Under the placement, the Company will issue 39,485,275 fully paid ordinary shares to the institutional and professional investors at an issue price of $0.095, representing an 18.7% discount to the 10-day volume-weighted average price prior to the trading halt.
The new shares to be issued under the placement will rank pari-passu with any other existing ordinary shares on the ASX. Cobalt Blue will be issuing a total of 23,491,165 shares under the ASX Listing Rule 7.1 and 15,994,110 shares under the ASX Listing Rule 7.1A.
Tentative date of the settlement is on or about 7 August 2020. The placement participants didn’t include any related parties of the Company. Lead broker Blue Ocean Equities Pty Limited managed the placement.
Use of Proceeds
Cobalt Blue has successfully raised the amount sought and would progress towards the achievement of milestones at the Broken Hill Cobalt Project.
Proceeds from the placement would be utilised for the BHCP, including:
- Construction and commissioning of the pilot plant
- Engineering and technical studies towards the Feasibility Study
- Advancing BHCP permits and approvals, which include Environmental Impact Statement studies
- Capital requirement related to identifying and securing a joint venture partnership for the BHCP
- General working capital and other corporate purposes
Interesting Read: Cobalt Blue Foresees Strong Cobalt Market with Government EV Incentive Push
SPP – An Opportunity for Eligible Existing Shareholders
Cobalt Blue also announced a Share Purchase Plan (SPP) at a subscription price of $0.095 per share to all eligible existing shareholders on the Company’s Share Register on the record date, Thursday, 30 July 2020 as at 7:00 PM AEST.
The subscription price is same as the placement program. Further details on the share purchase plan will be announced and mailed to the shareholders in the upcoming week commencing on 3 August 2020.
COB stock settled at $0.105 a share on 31 July 2020, with a market capitalisation of $19.99 million. The last one-month return of the stock was noted at 38.89%.
Read: Scan Through Cobalt Blue’s June 2020 Quarterly Report With Noteworthy Accomplishments
(Note: All currency in AUD unless specified otherwise)
