Cobalt Blue Holdings Ltd has bolstered its finances by A$519,647 ahead of a key year in its critical minerals strategy after closing a pro-rata non-renounceable offer to eligible shareholders.
The offer was made on the basis of one new share for every five shares held by eligible shareholders on November 21, 2024, at an issue price of A$0.072 per share.
This represented a 10% discount to the closing price of A$0.08 on November 15, 2024, and between 20-23% to the 10 and 15-day VWAP, respectively as of that date.
When the offer closed on January 17, 2025, Cobalt Blue had received applications for 7,217,314 new shares, including those received under a top-up facility.
The expected date to issue new shares under the entitlement issue is January 23, 2025, and the expected date of the start of trading of these shares is January 24, 2025.
READ: Cobalt Blue progresses refinery and feedstock plans, including black mass MOU
The company intends to use the funds together with existing cash resources to fund the following:
- Kwinana Cobalt Refinery (KCR) work programs – including the KCR engineering program (delivered by Tetra Tech) permitting/approvals, financing, offtake/feedstock programs, as well as legal support work;
- Broken Hill Cobalt Project (BHCP) strategic review studies;
- ReMine+ opportunities, including desktop studies and/or test work at the Broken Hill Technology Development Centre; and
- General corporate activities.
READ: Cobalt Blue creating circular battery economy facilitated by ReMine+
The company reserves the right to place the shortfall shares from the entitlement issue at its discretion within three months of the closing date.
COB shares have been as much as 6.25% higher in ASX trading today to A$0.068.