The Cobre Limited (ASX: CBE) share price won't be going anywhere on Wednesday.
This comes as the company requested its shares be placed in a trading halt.
The mineral explorer's shares are currently frozen at yesterday's closing price of 18 cents apiece.
Image source: Getty Images
Why is the Cobre share price halted?
At market open, Cobre requested trading of its shares be halted while it prepares to make an announcement.
According to its release, the company is planning to update the market with respect to a material capital raising.
Cobre has asked that the trading halt remains in place until Friday 5 August or following the release of the announcement, whichever comes first.
What does this mean?
While details remain unknown about the capital raise, it appears the company may be seeking to fund its ongoing drilling campaign.
In an earlier announcement today, Cobre provided its latest drilling results from the Ngami Copper Project (NCP) in Botswana.
The third diamond drill hole intersected a 15-metre zone of copper mineralisation consisting of chrysocolla, malachite, and fine-grained chalcocite.
While still in progress, Cobre initially planned to test the first of 57 ranked targets on Kalahari Metal Limited's NCP licenses.
However, proving the occurrence of a significant strike length of copper mineralisation highlights the potential of new discoveries.
The diamond drill rig will move to the next hole upon completion.
Cobre executive chair and managing director Martin Holland said:
The ongoing hole further illustrates the strike length of intersected copper mineralisation in this exciting target which remains open-ended. The footprint of mineralisation, which now extends over more than 3km, is very much in-line with known deposits in the Kalahari Copper Belt….
About the Cobre share price
Since this time last year, Cobre shares headed on a downhill trend before rocketing during the last week of July.
Ultimately, this led the company's shares to register a gain of 16% for the period, rocketing 592% in the past month alone.
Cobre has a market capitalisation of roughly $29 million with approximately 165 million shares outstanding.
