- Koba Resources (KOB) taps investors for $4 million through a share placement to expedite exploration at its Canadian and Australian lithium projects
- Subject to shareholder approval, the oversubscribed placement will see KOB issue 26.6 million new shares at 15 cents — a 7.1 per cent premium to its last closing price on February 20
- One unlisted attaching option will be issued for every four placement shares with a strike price of 30 cents and an expiry date of December 27, 2024
- The cash raised will fund exploration programs at KOB’s Whitlock, JB1 and Python lithium projects
- Koba Resources is up 10.7 per cent, trading at 15.5 cents at 1:26 pm AEDT
Koba Resources (KOB) has tapped investors for $4 million through a share placement to expedite exploration at its Canadian and Australian lithium projects
The placement was oversubscribed, with “strong” support from new strategic investors.
The placement will see KOB issue 26.6 million new shares at 15 cents, representing a 7.1 per cent premium to the company’s last closing share price on February 20.
One unlisted attaching option will be issued for every four placement shares with a strike price of 30 cents and an expiry date of December 27, 2024
The company appointed Cynget Capital to act as lead manager for the placement, and Cygnet will receive a six per cent capital raising fee on the fund raised. Cygnet will also receive four million unlisted options with a 30 cents exercise price.
“I would like to thank Cygnet Capital and its clients for their support of this $4.0 million placement, which is a strong endorsement of the company and its assets,” Koba Managing Director and CEO Ben Vallerine said.
The settlement of the shares is expected to occur on April 11, with the allotment scheduled for April 14.
“The funds raised will be used to expedite exploration programs at our high-quality portfolio of lithium-pegmatite projects within world-class lithium districts in Canada and Australia,” Mr Vallerine said.
Proceeds from the placement will go towards the company’s Whitlock lithium project in Manitoba, which is positioned along-strike from Canada’s only producing lithium mine, and the JB1 lithium project in Quebec, located in the emerging James Bay lithium district.
Funds will also go towards the Python lithium project in the Pilbara region of Western Australia.
The placement is subject to shareholder approval, which is expected on April 4.
Koba Resources was up 10.7 per cent and trading at 15.5 cents at 1:26 pm AEDT.