Cooper Metals Limited (ASX:CPM) secures AU$2.55M in firm commitments

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Cooper Metals Limited (ASX:CPM) secures AU$2.55M in firm commitments

 Cooper Metals Limited (ASX:CPM) secures AU$2.55M in firm commitments
Image source: Cooper Metals Presentation May 2022
  • Cooper has secured firm commitments worth AU$2.55 million (before costs) to place 5.67 million shares at an issue price of AU$0.45 a share.
  • Shares of CPM traded at AU$$0.48 a share on 9 August 2022, zooming 5.5% against the previous close
  • Cooper intends to continue to expand the project area with the acquisition of adjoining exploration tenement, EPM27782, within the Mary Kathleen Domain.

Cooper Metals Limited (ASX:CPM) announced that it had secured firm commitments worth AU$2.55 million (before costs) to place 5.67 million shares at an issue price of AU$0.45 a share. The company reported that the equity placement had been well received and oversubscribed with excellent response from sophisticated investors and local institutions.

Shares of CPM traded at AU$$0.48 a share on 9 August 2022, zooming 5.5% against the previous close, with a market capitalisation of AU$18.2 million.

User proceeds of the capital raising program include –

  • Fast-track drill programs at CPM’s flagship Mt Isa Copper-Gold Project
  • Acquisition of further tenements in the Mt Isa region
  • Additional exploration activities, and
  • Working capital & offer costs

Exploration activities at King Solomon

RC drilling has already commenced at the King Solomon prospect to test targets along strike and the down dip extension of mineralisation intersected during the June initial drilling program. The maiden drilling program recorded the following results –

  • 22MERC016 - 17m @ 2.2% Cu from 84m including 8m @ 4.3% Cu from 84m
  • 22MERC003 - 18m @ 1.8% Cu and 0.11g/t Au from 57m, including 5m @ 5.4% Cu and 0.31g/t Au

The drilling activity will also test recently identified induced polarisation (IP) anomalies. IP surveys undertaken last month delineated IP anomalies, gold-copper targets, dop dip, adjacent and along strike from already known copper-gold mineralisation at King Solomon 1,2 and 3, indicating the potential of a much larger mineralisation system than was indicated earlier.

As many as 20 holes have been planned for the RC drilling and will be drilled in upcoming few weeks along with assays as and when available. Cooper intends to continue to expand the project area with the acquisition of the adjoining exploration tenement, EPM27782, within the Mary Kathleen Domain.

The new tenement will significantly expand the company’s exposure to the Fountain Range Fault, which has demonstrated extensive hydrothermal fluid flows and mineralisation and is now undergoing substantial exploration to the northeast of EPM19125 at the Hammer Metals (ASX: HMX) Ajax and Trafalgar Cu-Au prospects.

Equity placement

Cooper will issue as many as 5,666,667 fully paid ordinary shares in adherence to the existing capacity as per the ASX Listing Rule 7.1.

  • A total of 5,666,667 shares under the Company’s 15% placement capacity of 7.1
  • Shares will be issued at a 7.9% discount to the 15-day VWAP (A$0.489) and a 1.1% discount to the closing price of $AU0.455 on 4 August 2022.

The equity placement was managed by Taylor Collison Pty Ltd. Taylor Collison will be liable to receive fees equivalent to 6% of the money raised. Cooper intends to also issue 2.5 million options to its advisors, consultants and/or their nominees for their corporate advisory and investor relations services. Each of these options could be exercised at an exercise price of AU$0.65 a unit and will expire in 3 years from its date of issuance. These options will require the approval of shareholders, which will be sought at Cooper’s upcoming AGM in November.

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