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ASX-listed junior Cobre has completed a A$7-million capital raise to fund exploration work in Botswana.

The share placement, which was priced at 15c a share, was undertaken in two tranches with the first tranche, consisting of more than 20.3-million shares, placed under the company’s existing placement capacity. 

Cobre will issue a further 9.8-million shares to its largest shareholder Metal Tiger under the second tranche of the placement, subject to shareholder approval at a meeting scheduled for later this year.

Settlement of the first tranche is expected on August 11.

The company said on Thursday that funds raised will be used to fast-track exploration on the tenement package held by Kalahari Metals, where Cobar recently signed a share purchase deed to acquire the remaining 49% of the company, which it does not already own, subject to shareholder approval.

“The Cobre team is pleased to have secured funds required to continue to rapidly progress exploration on the Kalahari Metals tenement package in the Kalahari copper belt, following on from the successful results of the first three diamond holes announced over the past ten days,” said Cobre MD and executive chairperson Martin Holland.

“The footprint of mineralisation, which now extends over more than 3 km, is very much in line with known deposits in the Kalahari Copper Belt.”

Holland noted that interest in the placement was a vote of confidence in Cobre’s strategy to fast track exploration with the aim of unlocking the new potential discovery in Botswana.