Cobalt Blue Holdings Limited Investment and Eligibility Issue

Sydney, Australia (ABN Newswire) – Cobalt Blue Holdings Limited (ASX:COB) (FRA:COH) (OTCMKTS:CBBHF) is pleased to announce the successful completion of a private placement of fully paid ordinary shares of the Company ( New Actions) to sophisticated and institutional investors (Investment).

Placement

The Placement will involve the issuance of 6.9 million New Shares at an issue price of $0.58 per New Share to raise proceeds of $4 million (before fees).

The issue price of $0.58 per share represents a 12% discount to the closing price on November 2, 2022 and a 14% discount to the 10-day VWAP until November 2, 2022 inclusive.

The New Shares issued under the Placement will rank pari passu with the existing ordinary shares from the date of their issue. Settlement of the Placement is scheduled for November 11, 2022 and the New Shares issued under the Placement are expected to begin trading on the ASX on November 14, 2022. The Placement shares will use the Company’s existing capacity under of ASX Listing Rule 7.1.

COB Chairman Rob Biancardi said:

“Following this placement, the Cobalt Blue Board of Directors welcomes two new Tier 1 long-only domestic resource funds to our registry and believe this is an excellent endorsement of our BHCP project.

A presentation to investors can be viewed via a link at the end of this press release*.

Law problem

The Company is also pleased to announce a non-waiver capital increase allowing eligible shareholders to subscribe to one new share for every ten shares held on the record date of November 10, 2022 (record date) at a price of issue of $0.58 per share, to raise up to approximately $10-12 million (before costs) (eligibility issue).

The qualifying issue is not underwritten.

The Rights Issue includes an overdraft facility under which Eligible Shareholders who have exercised their full rights under the Rights Issue may apply to subscribe for additional New Shares beyond their pro rata entitlement. . Applications under the deficit facility will only be considered to the extent that there is a deficit within the scope of the eligibility question. The directors reserve the right to place the missing shares at their discretion within 3 months of the closing date.

If the Rights Issue is fully subscribed, 33,060,534 New Shares would be issued (subject to rounding) and would yield $19.2 million.

The Company intends to use the proceeds of the Offering together with existing cash resources to advance its business through 2H 2023 in conjunction with work to complete the Definitive Feasibility Study (DFS) on the Broken Hill Cobalt Project (BHCP). In addition to the DFS, the work will include:

(a) Initiation of Initial Engineering Design (FEED) studies, to be executed after delivery of the DFS

(b) Maintenance of the BHCP demonstration plant and retention of operating personnel beyond the DFS BHCP test work (which will likely be completed in Q1 2023) to retain a core of well-trained operators on staff until the commissioning of the BHCP (planned for 2025)

(c) Cobalt in waste streams where current test work should be expanded, potentially requiring larger scale test work at the existing demonstration plant

(d) Selective local purchases of commercial/industrial properties needed to support future BHCP operations

(e) General business activities, including partner selection and project funding investigations.

*To view the investor presentation, please visit:
https://www.abnnewswire.net/lnk/7SE1CV8E

About Cobalt Blue Holdings Limited:

Cobalt Blue Holdings Ltd (ASX: COB) (FRA: COH) (OTCMKTS: CBBHF) is an exploration and project development company. Work programs advancing the Broken Hill Cobalt project in New South Wales continue. Our ambitious goals depend on the availability of funds. Cobalt is a strategic metal in high demand for next-generation batteries, including lithium-ion batteries now widely used in clean energy systems.

Source:
Cobalt Blue Holdings Limited

Contact:

Joe Kaderavek
Chief Executive Officer
[email protected]
P: (02) 8287 0660
 

Margie D. Carlisle