Coda Minerals Ltd (ASX:COD) has received firm commitments for a placement of 12 million shares at $1.20 per share to raise $ 14.4 million before costs, which together with existing cash reserves, will be used to fund an ambitious and fast-paced exploration program at the company’s 70%-owned Elizabeth Creek Copper Project in South Australia.
The company plans to complete an exploration program at Emmie Bluff Deeps and is on track to deliver a maiden Mineral Resource Estimate at the Copper-Cobalt deposit in the second half of 2021.
The placement was managed by CPS Capital and was very well supported with bids received exceeding the targeted amount by over 100%.
“Next six months transformational for Coda”
Coda Minerals chairman Keith Jones said: “We are absolutely delighted with the strong support received from the market.
“The very high level of interest from investors has translated into a strongly supported $14.4 million placement, which has really set the company up for success.
“The proceeds will boost our total cash to $21.5 million, allowing us to progress an ambitious work program including a comprehensive program of deep holes at Emmie Bluff Deeps, resource drilling at the Emmie Bluff copper-cobalt deposit plus an aggressive regional exploration program.
“The next six months promises to be a transformational period for Coda shareholders.”
Placement details
The issue price of $ 1.20 per share represents a 4.1% discount to the 5-day volume-weighted average price (VWAP), and a 3.7% discount to the 10-day VWAP of the company up to close on 16th June 2021.
Settlement of the placement is expected to occur on 25 June 2021 with allotment to occur on 28 June 2021.
Performance rights
Following completion of all conditions precedent for the Cameron River Farmin Agreement, Coda will also issue 250,000 new shares and 500,000 performance rights to Wilgus Investments Pty Ltd on 28 June 2021.
Upon completion of the share issues, the company’s issued capital will increase to 97,767,184 shares, with the 12,000,000 new shares issued under the placement representing around 12.3% of the expanded share capital.