JSE-listed Copper 360, formerly Big Tree Copper, has raised additional funding of R99.8-million through the issue of shares for cash on certain terms and conditions, aligned to the company’s funding strategy of entering into various loan agreements to fund the Nama Copper acquisition and expanded production growth plan for the Rietberg mine in South Africa’s Northern Cape. 

Copper 360 shareholders, at the company’s annual general meeting held on September 4, 2023, granted the board of directors a general authority to issue shares for cash.

Through internal reorganisation, Copper 360 has acquired assets previously held by Cape Copper Oxide in exchange for Copper 360 shares.

The JSE has approved the listing of 37.7-million shares with effect from February 15. These shares are held as treasury shares.

Copper 360 announces that it has placed 29.4-million shares for the 30 trading days up to and including February 14, raising an amount of R99.8-million in new equity.

The treasury shares are being used to accelerate settlement through a scrip lending agreement between Copper 360 and Cape Copper Oxide.

The scrip lending agreement will remain in place until such time as the JSE approves the application to list the additional 29.4-million shares, at which time the shares will be returned to Cape Copper Oxide and will continue to be held as treasury shares.

To mirror the key commercial terms of the loan notes disclosed on December 21, Copper 360 has negotiated a buyback option with the investor.

“We are excited to have secured the additional funding that allows us to complete the acquisition of Nama Copper and to secure, in large part, our short-term working capital requirements as we build up our exports of copper concentrate and copper cathodes, which in turn allows us to finalise our offtake arrangements.

“The total capital raised through various structures of debt and equity now stands at R374-million. The latest tranche of about R100-million will limit the potential dilution to shareholders through its hybrid nature,” says Copper 360 CFO Stephan du Plessis.

Meanwhile, Copper 360 says it has received formal notification in the prescribed form that Cape Copper Oxide has acquired an interest in the ordinary shares of the company, such that the total interest in the ordinary shares of the company held by Cape Copper Oxide has increased to 5.64% of the total issued ordinary shares of the company.

Copper 360 has filed the required notices with the Takeover Regulation Panel.