Cobre (ASX:CBE) has received firm commitments from institutional, sophisticated, and professional investors for a two-tranche placement of $90 million to fast-track production and exploration at the Sierra Atacama Copper Mine in northern Chile.
The placement comprises approximately 300 million new fully paid ordinary shares at an issue price of $0.30 per share.
This issue price represents a 9.1% discount to the last close price of $0.33 on 6 July 2026 and an 8.6% discount to the 10-day volume-weighted average price of $0.328.
Cobre notes the capital raise was cornerstoned by major shareholders Tribeca Investment Partners, subscribing for $20 million; and Strata Investment Holdings (ASX:SRT), subscribing for $8 million.
The company’s directors are also participating in the placement for an aggregate $200,000, subject to shareholder approval.
Under the terms of the placement, tranche one aims to raise around $72 million via the issue of approximately 240 million shares under the company’s existing placement capacity.
Meanwhile, tranche two will raise around $18 million via an estimated 60 million shares, subject to shareholder approval at an extraordinary general meeting expected in late August or early September 2026.
Cobre intends to allocate $17 million to increase its ownership of the Sierra Atacama Project and $26 million to repay debt.
A further $29 million is allocated for a plant upgrade at Sierra Atacama and other development costs.
The rest of the funds are earmarked for other workstreams, including resource, near-mine, and sulphide drilling, regional exploration, and activities at the Botswana projects.
Executive Chairman Martin Holland says the capital raise marks a ‘transformational’ milestone as Cobre moves towards becoming a mid-tier copper producer.
“We are increasing our exposure to what we believe is one of the most exciting emerging copper districts in Chile — in the home of copper, while simultaneously strengthening our balance sheet and funding the next phase of growth,” Holland says.
“With production, exploration, and development all advancing in parallel, Cobre is entering a new phase of value creation.”
Settlement of tranche one is expected on 15 July, with allotment and trading of new shares slated the following day (16 July).
Canaccord Genuity (Australia) acted as lead manager, Euroz Hartleys (ASX:EZL) as co-manager, and CPS Capital as broker for the placement.
Cobre is focused on copper production in Chile and tier one copper exploration in Botswana.
Write to Paula Fabe at Mining.com.au
Images: Cobre
