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 £991,300 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%
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