Cobra Resources PLC - South Australia-focused gold and rare earth exploration company - Says that a previously announced placing is fully subscribed, and will raise the maximum amount of GBP991,300 through the issue of 99.1 million new shares. The issue price of one pence per share represents an 11% premium to the mid-market closing price on November 14. Each share will be issued with a warrant attached, with an exercise price of two pence.
Cobra says the net proceeds will be used to satisfy cash consideration for the acquisition of the remaining 25% of the Wudinna gold and rare earth project from Andromeda Metals Ltd. It will also be used to execute a planned work programme at the Boland ionic rare earth discovery.
Chief Executive Officer Rupert Verco says: "I'd like to thank the investors in the placing which include several distinguished mining sector individuals - both associated and unassociated with the company. This will enable Cobra to proceed as 100% owner of the project and dominant holder of palaeo-channel ground in the region."
Current stock price: 1.05 pence, up 17% in London on Wednesday at noon
12-month change: down 38%
By Holly Beveridge, Alliance News reporter
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Cobra Resource (COBR)