Copper miner 29Metals has launched an entitlement offer to raise AU$150 million to support its projects in Western Australia and Queensland.
The company is offering a one-for-3.66 rights issue, priced at 40 cents per share. The offer will result in the issue of 375 million new shares, with major shareholders BUMA and AustralianSuper taking up their entitlements and subscribing for AU$29.2 million and AU$26.8 million, respectively.
However, 29Metals’ biggest shareholder, private equity group EMR Capital, will not subscribe to new shares as it is not in a position to participate in the capital raising. EMR’s shareholding will fall to 18 per cent post issuance.
Proceeds from the capital raising will be used for working capital to support the company’s Xantho Extended zinc zone at 29Metals’ Golden Grove mine in Western Australia, and the progression of a restart definitive feasibility study at Capricorn Copper project in Queensland.
29Metals CEO James Palmer said: “We have a clear plan to recommence mining at Xantho Extended in April 2026.
“In the meantime, this equity raising is expected to allow us to maintain our commitments to our strategic growth objectives to accelerate value realisation across the portfolio.
“Specifically, the ongoing investment in Gossan Valley, progression of a restart definitive feasibility study at Capricorn Copper and drilling to test priority exploration targets across the portfolio.”
The company is working on restarting operations at Xantho Extended, where mining has been suspended due to the impact of seismic events.
Works are underway to upgrade ground support for specific areas of the existing mine workings.
29Metals said the Gossan Valley project remains on track for AU$112 million capital expenditures to first ore by the end of 2027.
