Canadian Phosphate (ASX:CP8) has completed a $350,000 follow-on placement after its $4.85 million rights issue attracted ‘excess’ demand from new investors.
The rights issue, which was announced on 1 June, closed with ‘significant’ support from existing shareholders, including all participating company directors.
Under the follow-on placement, Canadian Phosphate will issue 37.18 million new fully paid ordinary shares and 18.59 million new options exercisable at $0.25 with an expiry date of 26 June 2028.
The options will be quoted under the ASX code ‘CP8O’.
Mahe Capital acted as lead manager to the rights issue and advised the company on both the rights issue and follow-on placement.
Canadian Phosphate says proceeds will fund development across the company’s phosphate assets in Canada and the US.
This includes exploration drilling at the Wapiti Project in British Columbia to support a maiden resource estimate, mining activities at Fernie, and advancing the acquisition and development of the Diamond Mountain Phosphate Project in Utah.
Funding will also be used for permitting and exploration activities to support future resource growth and production opportunities.
Managing Director and CEO Daniel Gleeson thanked shareholders for their “continuing support” during the rights issue and welcomed new shareholders via the follow-on placement.
“It is an exciting time for Canadian Phosphate as we rapidly define resources under JORC standards at Wapiti and at Diamond Mountain in Utah once our acquisition is completed,” Gleeson says.
The company says the new securities are expected to be issued on 26 June 2026.
Canadian Phosphate is a developer and explorer focused on supplying sedimentary rock phosphate into Canada.
Write to Paula Fabe at Mining.com.au
Images: Canadian Phosphate
