The Cobre Ltd (ASX: CBE) share price is climbing again today and has lifted more than 600% in a month.
This ASX mining share is rising 1.39% today. In this week alone, the company's share price has exploded 100%.
Let's take a look at what Cobre announced today.
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$7 capital raise attracts 'significant demand'
Cobre has completed a $7 million capital raise at 15 cents a share to sophisticated and institutional investors.
This follows the company entering a trading halt yesterday ahead of news of this capital raise.
Cobre said the placement attracted "significant demand" from current and new sophisticated international and domestic institutional investors.
Shares were offered at a 16.7% discount to the closing price on 2 August.
The funds will be used to fast track exploration at the Kalahari Copper Belt in Botswana. Cobre said the exploration will be on the tenement package held by Kalahari Metals Limited (KML). Cobre signed a share purchase deed to acquire 100% of Kalahari Metals, a UK company, in June.
The placement involves two stages, the second of which will require shareholder approval at a meeting later this year. This second stage involves the issue of 9.8 million ordinary shares at 15 cents per share to the company's largest shareholder, Metal Tiger PLC.
Commenting on the news, executive chairman and managing director Martin Holland said:
I would like to extend a vote of thanks for the support from existing and new shareholders into this placement which we see as a vote of confidence in the strategy the board is developing to fast track exploration with the aim to unlock this new potential discovery in Botswana.
Earlier this week, Cobre reported significant copper mineralisation at the project.
Cobre share price snapshot
Cobre's shares have jumped 22% in a year, while it has surged 94% in the year to date.
For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) has lost more than 16% in the last year.
Cobre has a market capitalisation of nearly $30 million based on its current share price.
