After a huge 12-month run, Cobre Ltd (ASX: CBE) shareholders are seeing some selling pressure on Wednesday.
The ASX copper stock has returned from a trading halt, and investors have not exactly rushed back in.
At the time of writing, the Cobre share price is down 10.61% to 29.5 cents.
Even after today's fall, Cobre shares are still up 195% since the start of 2026 and around 640% over the past year.
Here's what the company revealed.
Image source: Getting Images
$90 million placement completed
According to the release, Cobre has received firm commitments to raise $90 million before costs through a two-tranche placement.
The company will issue around 300 million new shares at 30 cents each to institutional, sophisticated, and professional investors.
The first tranche is expected to raise about $72 million, while the second tranche is expected to raise a further $18 million.
However, the second tranche will need shareholder approval at an extraordinary general meeting, which is expected to be held in late August or early September.
Cobre said the raising was strongly supported by new and existing shareholders, including global resources specialists and domestic and offshore investors.
Two of its major shareholders, Tribeca Investment Partners and Strata Investment Holdings, helped cornerstone the raising.
Cobre directors are also planning to take part, with board members committing a combined $200,000, subject to shareholder approval.
Where the money is going
A big chunk of the raising is being directed towards Cobre's Sierra Atacama Copper Project in Chile.
Cobre said the money will go towards increasing its stake in the project, repaying debt, upgrading the plant, and funding more drilling.
The company has set aside $29 million for plant upgrades and other development costs at Sierra Atacama.
Another $26 million is expected to go towards debt repayment, while $17 million will be used to increase Cobre's ownership in the project.
Cobre also plans to spend $17 million on Sierra Atacama exploration, including resource, near-mine and high-grade sulphide drilling.
Why are Cobre shares falling?
The selling pressure appears to be coming from the terms of the capital raising.
Cobre priced the placement at 30 cents per share, which is a 9.1% discount to its last close of 33 cents on 6 July. It is also below the 10-day volume weighted average price of 32.8 cents.
Furthermore, the raising will add a large number of new shares.
If both tranches are completed, Cobre will issue around 300 million new shares, adding to the 966 million shares it already has on issue.
After such a strong run over the past year, the discounted placement and extra shares were always going to weigh on the stock.
The next things to watch the shareholder vote on the second tranche and the next round of work at Sierra Atacama.
