Cobre Ltd (ASX:CBE) has completed a strongly supported A$90 million placement, giving the company fresh capital to increase its exposure to the Sierra Atacama Copper Mine in Chile and fast-track production, development and exploration.
The placement received firm commitments from institutional, sophisticated and professional investors for about 300 million new fully paid ordinary shares at A$0.30 per share. It will be completed across two tranches, with Tranche 1 raising about A$72 million and Tranche 2 expected to raise about A$18 million, subject to shareholder approval.
The raise was strongly supported by new and existing shareholders, including global resources specialist investors based in Australia and offshore. Cobre’s major shareholders Tribeca Investment Partners and Strata Investment Holdings PLC (ASX:SRT) cornerstoned the placement, while the company’s board will also participate for A$200,000, subject to shareholder approval.
Funding Sierra Atacama growth
Funds raised, together with existing cash, will be directed toward increasing Cobre’s ownership in the Sierra Atacama Project, repaying debt, exploration and development costs, activities at its Botswana projects, working capital, corporate costs and offer costs.
The largest allocations include A$29 million for a plant upgrade to 1,500 tonnes per month and other Sierra Atacama development costs, A$26 million for debt repayment, A$17 million toward increasing ownership in the project and A$17 million for Sierra Atacama exploration, including resource, near-mine and high-grade sulphide drilling.
Executive chair Martin Holland described the raising as “a transformational milestone” as Cobre moves toward becoming a mid-tier copper producer.
“This $90m capital raise marks a transformational milestone for Cobre as the Company moves toward 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 said.
Placement details
The placement price of A$0.30 per new share represents a 9.1% discount to Cobre’s last closing price of A$0.33 on July 6, 2026, and an 8.6% discount to the 10-day volume weighted average price of A$0.328. New shares issued under the placement will rank equally with existing ordinary shares.
Tribeca subscribed for A$20 million and Strata for A$8 million, with Strata’s participation and the board’s participation requiring shareholder approval under ASX Listing Rule 10.11 at the upcoming extraordinary general meeting.
Canaccord Genuity (TSX:CF, LSE:CF) acted as lead manager to the placement, with Euroz Hartleys as co-manager and CPS Capital as broker to the offer.
About Cobre
Cobre is advancing the Sierra Atacama Copper Mine in Chile, with the latest capital raise designed to support a broader growth program across production, exploration and development.
The company is also maintaining activities across its Botswana projects, with A$4 million allocated to work in that portfolio as part of the placement’s use of funds.