Exploding 600% in a month, what is going on with the Cobre share price?

Piggy bank rocketing.Piggy bank rocketing.

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.

$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.

The post Exploding 600% in a month, what is going on with the Cobre share price? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Cobre Limited right now?

Before you consider Cobre Limited, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Cobre Limited wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

See The 5 Stocks
*Returns as of July 7 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/2y7bflm

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s