CuFe raises $3m to fast-track exploration for copper, niobium and lithium

Sophisticated and professional investors commit to subscribing for $3m worth of shares
CuFe to use proceeds to fast-track exploration for copper, niobium and lithium
Exploration to be carried out at the Tennant Creek, West Arunta and North Dam projects

Special Report: Investors have demonstrated their confidence in the prospectivity of CuFe’s copper, niobium and lithium assets by committing to a $3m placement.

A geophysical review earlier this year of the company’s West Arunta tenure had identified nine targets areas from airborne magnetic data.

This is hugely significant for CuFe (ASX:CUF) as its tenements are right next to Lycaon Resources’ (ASX:LYN) Stansmore project, which is in turn just 90km from WA1 Resources’ acreage

WA1 made the West Arunta a household name after discovering thick, high-grade niobium, topping up at 30m at 4.7%.

To top it off, CUF’s tenure covers several magnetic anomalies that show some similarities to recent carbonatite/niobium discoveries in the region.

Separately, the company’s North Dam project, which lies between Mineral Resources’ (ASX:MIN) Mt Marion lithium mine and Develop’s (ASX:DVP) Pioneer Dome lithium project in the WA Goldfields region, has several lithium anomalies along a 3.5km stretch.

CUF also holds the Orlando deposit within its Tennant Creek project in the Northern Territory, which has a resource of 2.88Mt grading 1.3% copper and 1.4g/t gold.

Most of this resource is contained within the higher confidence Indicated category, which provides improved assurance about its resource model and allows for mine planning.

The Orlando resource is part of CUF’s wider Tennant Creek project which has an overall resource of 7.29MT grading 1.7% copper and 0.6g/t gold.

Funded for exploration

These assets were attractive enough for professional and sophisticated investors to commit to subscribing for 187.5 million shares priced at 1.6c each, which represents a 7.8% discount to the 15-day volume weighted average price.

The placement includes one free attaching option exercisable at 2.5c and expiring three years from the date of issue for every two shares subscribed for.

Proceeds from the placement will be used to fast-track exploration at Tennant Creek, North Dam and West Arunta.

“We are pleased to have secured this injection of funds into the company to fund exploration activities at our projects, which have prospectivity for some of the world’s most sought-after future facing minerals in copper, lithium, niobium and rare earths,” executive director Mark Hancock said.

“CuFe has been in a different position to many junior players in that since its JWD iron ore mine commenced in 2021 it has been providing cash flow to fund our exploration and administration costs without the need to raise further equity.

“While that remains the case we are keen to fast-track our exploration activities now we have such a prospective portfolio, rather than being able to perform them as and when the iron ore price allows, so this raise gives us that flexibility.”

This article was developed in collaboration with CuFe, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.