Cobalt Blue Holdings Ltd (ASX:COB, OTC:CBBHF) has secured firm commitments for a $2.5 million equity funding package to bolster its working capital and accelerate progress across its key projects, including the Kwinana Cobalt Refinery, the Broken Hill Cobalt Project and the Halls Creek copper-zinc-silver venture.
The funding comes through two simultaneous arrangements: a A$1 million institutional placement and a placement agreement with Lind Global Fund III LP, an institutional fund managed by New York-based The Lind Partners, for an initial drawdown of A$1.5 million.
Placement details
The institutional placement will see COB issue 22.8 million new shares at $0.045 each — a 16% discount to the 15-day volume-weighted average price (VWAP) — along with 7.6 million free-attaching options exercisable at $0.08 within three years. Pamplona Capital Pty Ltd acted as lead manager and bookrunner and will receive 5 million options as part of its fee arrangement.
Settlement is expected around September 19, 2025, with new shares ranking equally with existing fully paid ordinary shares.
The Lind agreement provides for an initial $1.5 million prepayment, with the potential for an additional $4.5 million by mutual agreement. Lind will also receive 11.1 million options at $0.08.
Funding priorities
Cobalt Blue said the proceeds will support:
- advancing the Kwinana Cobalt Refinery towards final investment decision (FID), including permitting, offtake negotiations and project finance planning;
- finalising obligations to former joint venture partner American Rare Earths Ltd at the Broken Hill Cobalt Project;
- optimising equipment design, particularly the kiln circuit, and evaluating black mass processing at the Broken Hill Technology Centre; and
- preparing a pre-feasibility study and exploration program for the Halls Creek project, including test work targeting 3.6 million ounces of silver currently excluded from the scoping study.
Read more: Cobalt Blue advances refinery and project milestones as Broken Hill hub delivers key results
CEO Dr Andrew Tong said the package would allow Cobalt Blue to pursue milestones with confidence.
“This funding package provides immediate capital to close the promissory note, strengthen our financial position and support our key initiatives of advancing the Kwinana Cobalt Refinery towards FID, and development of an exploration program for the Halls Creek copper-zinc-silver project,” Tong said.
“We appreciate the confidence of both existing and new shareholders,” he added. “After evaluating a range of funding options, this package was selected due to its ability to balance our immediate funding needs with our commitment to maximising long-term shareholder value.”
Strategic support, project pipeline
Lind Partners founder Jeff Easton said the asset manager was “thrilled” about the partnership with Cobalt Blue.
“The company’s commercial strategy represents the kind of opportunity we look for, where our capital can help accelerate value creation,” he said. “Lind is proud to support Cobalt Blue’s mission and to back a team with a clear vision and proven track record of execution.”
COB is progressing four core assets: the proposed Kwinana refinery, the large-scale Broken Hill Cobalt Project (recently granted a three-year extension to Major Project Status), the Broken Hill Technology Centre and the Halls Creek copper-zinc-silver project. Together, these assets form the basis of its strategy to develop Australia’s critical minerals supply chain.
As flagged earlier this year, the company plans to seek shareholder approval to change its name to Core Blue Minerals Ltd.