Koba Resources (ASX:KOB) has completed the placement of 11 million ordinary shares at an issue price of $0.15 per share, together with almost 2.75 million free attaching unlisted options each exercisable at $0.30.
On 16 December, the company reported that it had received firm commitments for a placement to raise $1.65 million. The placement was strongly supported by a range of sophisticated and professional investors, including some of Koba’s largest shareholders.
Proceeds from the equity raise will be used to advance the company’s portfolio of ‘high-quality’ lithium-pegmatite projects in Canada, including the new JB1 and Davidson Lithium projects and the existing Whitlock Lithium Project together with the Python Lithium Project in the Pilbara.
Euroz Hartleys and Peloton Capital acted as joint lead managers to the placement.
Addressing the capital raise on 16 December, Koba Managing Director and CEO Ben Vallerine said: “I would like to thank both new and existing shareholders for their strong support of this $1.65 million placement which is a strong endorsement of the Company and its portfolio.
“The funds raised will be used to progress our recently acquired, high-quality portfolio of lithium projects within two world class lithium districts in Canada”
The funds raised will be used to progress our recently acquired, high-quality portfolio of lithium projects within two world class lithium districts in Canada.”
Koba Resources is an Australian resources company exploring a portfolio of ‘high-grade’ cobalt projects in the US to support the electric vehicle revolution and the world’s path to net zero emissions.
A key component of batteries, cobalt’s global consumption is forecast to more than double increasing from 156,000 tonnes in 2021 to more than 400,000 tonnes by 2030 with demand driven by the growth in electric vehicles, energy storage systems and smart devices.
The cobalt price has risen from $US33,000 per tonne in January 2021 to $US82,000 per in May 2022 with substantial shortfalls in cobalt supply forecast over the same period.
Write to Adam Orlando at Mining.com.au
Images: iStock
