Highlights

  • CUF has issued 318 million new shares at 1.7 cents with free-attaching unlisted options.
  • Funds to accelerate exploration and feasibility at Tennant Creek Copper/Gold Project, NT.
  • CuFe secures USD 5.4m via private placement to advance exploration and studies.

CuFe Ltd (ASX:CUF) has secured commitments to raise USD 5.4 million (before costs) through the issue of 318 million shares at 1.7 cents per share. The placement includes one free unlisted option for every two shares subscribed, exercisable at 5 cents and expiring on 30 November 2027.

The issue price matches the company’s last closing price and represents a 9% premium to the five-day volume weighted average price (VWAP).

This Strategic Private Placement comprises four participants, led by critical minerals and strategic defence sector investor Mr. Mathew August, along with a leading institutional investment fund and two high-net-worth investors from North America and Australia. The placement is intended to strengthen CuFe’s share register with long-only strategic investors aligned with the company’s operational objectives.

Use of Funds

Proceeds will primarily support exploration and feasibility work at CuFe’s Tennant Creek Copper/Gold Project in the Northern Territory. Planned work includes upgrading the resource classification at Gecko, progressing underground mine planning, and expanding technical and geological knowledge of the Bismuth resource potential.

Interest in Bismuth has risen following recent market disruptions driven by Chinese export controls. The company will also continue assessing the potential for a starter pit to produce direct shipping copper/gold ore, providing early cash flow prior to constructing a new processing plant.

Additional programs will target Niobium and Copper prospects in West Arunta, gold targets in the Pilbara, Bryah, and Yilgarn regions, and iron ore near the high-grade Yarram deposit.

Management Commentary

CuFe Executive Director Mark Hancock stated,

“We are pleased to secure this new injection of capital to enable us to continue the excellent work the team have been doing at Tennant Creek, where we have grown the resource significantly over the last 12 months. We now have the funds to complete the next phase of exploration drilling and study work at Tennant Creek. This will include improving the resource classification at Gecko, progressing underground mining studies, a review on the potential to produce the critical mineral Bismuth, which has previously been produced from our Gecko / Orlando project and also the potential to develop a starter pit producing direct shipping copper / gold ore which could offer an earlier cashflow generation opportunity in advance of construction of a new processing plant.”

Placement Structure

The accompanying Placement Options will be subject to shareholder approval at the upcoming Annual General Meeting.  A fee of 6.0% will be paid to the financial consultant of the placement, Atlas Capital Group II LLC.

Share Performance of CUF

The company is currently trading at AUD 0.026 per share up by 52.941% from its last close of AUD 0.017.