Cannindah Resources (ASX:CAE) is raising a total of $17 million through a placement and share purchase plan to fund drilling and exploration at its Mt Cannindah Project in Queensland.
The company has received firm commitments for a $15 million placement, which will issue a total of 333.33 million shares over two tranches.
Cannindah will raise $11.075 million in the first tranche of the placement, issuing shares at $0.045 each, before the remaining $3.93 million is raised in tranche two under the same issue price. The second tranche is subject to shareholder approval.
The issue price of shares represents a 15.4% discount to the company’s five-day volume weighted average price (VWAP) of $0.053, as well as a 9.7% discount to the 15-day VWAP.
Canaccord Genuity is acting as the lead manager and bookrunner for this placement, with Cannindah directors expected to contribute $225,000 in tranche two.
Lion Selection Group (ASX:LSX) has committed to invest $2 million in the placement.
Lion Managing Director Hedley Widdup says drilling at Cannindah will target a pencil porphyry at the Southern Porphyry target, “which is a large and potentially valuable target style”.
“This target is supported by a broad range of evidence at surface, including copper and gold in a variety of mineralised settings, one of which is an established resource,” Widdup says.
“Its most recent drilling has reported copper and gold mineralisation in porphyry intrusive rocks – the right rocks – which brings the potential to life.”
Cannindah will also raise another $2 million through a non-underwritten share purchase plan, where eligible shareholders will be invited to subscribe for up to $30,000 of shares, issued at the same offer price as the placement.
Funds will be used to conduct reverse circulation drilling at the project, with intention to expand the Mt Cannindah copper-gold breccia deposit, which has a current resource estimate of 14.5 million tonnes @ 1.09% copper equivalent.
The company will also conduct diamond drilling at the Southern Porphyry target, as well as other exploration and development activities.
Chairman Tony Rovira says the board is pleased to welcome several natural resources-focused investors in this financing offer.
“The strong interest in this capital raise is a clear endorsement of the potential upside of the Mt Cannindah Project, and the company has ambitious plans to grow the copper and gold resources by upsizing our drilling programs and implementing other exploration activities and strategies across the project area,” Rovira says.
Mt Cannindah is just 90km southwest of Gladstone, with a minimum of 17 copper-gold-molybdenum occurrences adjacent to and peripheral to the Triassic Monument Intrusive complex.
Cannindah Resources is an Australian explorer focused on the development of copper and gold projects in central Queensland.
The company is attending the RIU Explorers Conference in Fremantle, Western Australia, held from 17-19 February 2026. Mining.com.au is a media partner for the conference.
Write to Maddison Elliott at Mining.com.au
Images: Cannindah Resources
