Shareholders can subscribe for one share for every six shares held at the record date (7:00pm AEST on May 17 2019) at an issue price of 12 cents per share.
Blue Ocean Equities will act as lead manager and will fully underwrite the entitlement issue.
The maximum number of shares to be issued under the entitlement issue is 20,765,589 (assuming that none of the 27,171,547 options on issue are exercised) and the amount to be raised is $2,491,871.
If all of the 27,171,547 options are exercised, then a further 4,528,591 fully paid ordinary shares may be issued under the entitlement offer.
The issue price of 12 cents per new COB share represents a discount of about 14.3% to the last closing price of COB shares on May 10 2019 of 14 cents.
COB will use the funds to support further development of the Thackaringa Cobalt Project in NSW, including drilling, geological and geotechnical work, mine planning, engineering, financial and metallurgical studies.
COB is continuing to enhance economics at the Thackaringa Cobalt Project and recently released a significant boost in resources.
The resource now comprises 111 million tonnes at 889 ppm cobalt-equivalent for 79,500 tonnes of contained cobalt at a 400 ppm cobalt-equivalent cut-off.