CODA Minerals Launches $8.33m Underwritten Offer: Shareholder Opportunities Ahead
Why This Entitlement Offer Matters
CODA Minerals (ASX:COD) is not another junior explorer begging for attention. It is an Australian copper, silver, and cobalt developer with a flagship in South Australia that is beginning to look like serious business.
The company has announced a fully underwritten entitlement offer to raise $8.33m, providing current shareholders with a shot at discounted shares and free options.
At a time when copper is being touted as “the new oil”, CODA’s timing is strategic and potentially very rewarding for those already on the register.
Key Details of the $8.33m Entitlement Offer
The offer is structured as a fully underwritten, non-renounceable, pro rata entitlement offer exclusively for existing investors. Shareholders can acquire 1 new share for every 3 held at an issue price of $0.10 with no brokerage costs.
The underwriting is provided by Leeuwin Wealth Pty Ltd with backing from institutions and major holders. Directors are personally subscribing for around A$200k worth of entitlements. On top of that, investors receive 1 free listed attaching option for every 4 shares, exercisable at $0.15 and expiring 28 March 2029.
Why CODA Is Raising Capital Now
The strategic rationale is straightforward. The raise provides approximately 12 months of financial runway and funds the critical Pre-Feasibility Study (PFS) milestones at the Elizabeth Creek Copper-Cobalt Project.
Proceeds will be deployed into drilling, engineering, metallurgical test work, as well as covering general working capital requirements.
Elizabeth Creek Project: The Growth Engine
Elizabeth Creek is CODA’s crown jewel. The project carries a pre-tax NPV of roughly $1.3 billion and an internal rate of return of 39%.
With a projected 15.5-year mine life and more than one million tonnes of copper equivalent, the economics are compelling.
Recent metallurgical breakthroughs lifted copper recovery to 95% and silver to 98% while shaving $74m off expected development costs. The ore body sits at a relatively shallow depth compared to global underground peers, giving CODA a cost advantage. The cobalt upside has not yet been factored into the numbers, meaning the project still has room to surprise on the upside.
Market Tailwinds: Copper’s Bullish Case
Copper is not merely a commodity, it is the metal wiring the energy transition. Analysts are already calling structural deficits, with inventories near record lows and supply growth crippled by underinvestment.
At the same time, demand is surging thanks to renewable infrastructure, EV adoption, and AI data centres. Goldman Sachs reaffirmed copper as the “new oil” and projected prices could top $15,000 per tonne in the coming years. CODA is therefore positioning itself in front of one of the strongest macro themes in the resources sector.
The Shareholder Opportunity: Options and Upside
Eligible shareholders get more than discounted shares. The entitlement offer comes with a free attaching option for every four shares issued, priced at $0.15 and valid until 2029.
This structure provides investors with asymmetric upside, giving exposure to the near-term PFS milestones and the longer-term growth of Elizabeth Creek at effectively no extra cost.
Leadership and Governance Strength
Strong projects demand strong leadership. CODA’s CEO Chris Stevens brings Oxford credentials, a background in mineral economics, and past success as CEO of Gindalbie Metals where he led a corporate restructure. He also held senior roles at PwC advising on mining feasibility.
The board is equally seasoned, with Chairman Keith Jones (former Chairman of Deloitte Australia), Paul Hallam, and Robin Marshall each having a history of delivering complex mining operations globally.
Directors collectively own about 6.8% of the company’s shares and are investing another A$235,000 in this raise, showing alignment with everyday shareholders.
Why Investors Should Pay Attention
The offer is fully underwritten with institutional support, directors are increasing their own exposure, and the Elizabeth Creek project continues to improve economically.
Add in copper’s bullish long-term outlook and CODA starts looking like a levered play on decarbonisation and global infrastructure demand.
The combination of discounted equity, free options, and board alignment stacks the odds in favour of existing shareholders.
About CODA Minerals
CODA Minerals Ltd (ASX:COD) is an Australian exploration and development company focused on copper, silver, and cobalt in South Australia. Its flagship Elizabeth Creek Project sits in a Tier 1 jurisdiction near major BHP assets.
With scale, attractive economics, and upside potential from cobalt, CODA is building momentum as a future-facing metals developer.
Conclusion: The Takeaway for Shareholders
For eligible shareholders, participation in this entitlement offer is more than a discounted entry. It is a chance to pick up free long-dated options, invest alongside directors, and back a company sitting on a billion-dollar copper project in one of the best mining addresses in the world.
The raise fortifies CODA’s balance sheet and accelerates the PFS, while macro conditions in copper provide a rising tide that could lift the entire sector. For those already on the register, the opportunity is straightforward: participate now or risk watching the next leg of CODA’s growth story unfold from the sidelines.
Frequently Asked Questions
1. Who can participate in CODA Minerals’ entitlement offer?
The offer is non-renounceable and available only to eligible existing shareholders of CODA Minerals (ASX:COD). If you hold shares on the record date, you can apply for new shares under the terms of the offer.
2. What is the issue price of the new shares?
Eligible shareholders can acquire 1 new share at $0.10 for every 3 shares held. No brokerage fees apply.
3. What are the attaching options being offered?
Participants will receive 1 free listed option for every 4 shares issued. Each option carries an exercise price of $0.15 and expires on 28 March 2029, offering potential leveraged upside if CODA delivers on project milestones.
4. How will CODA use the proceeds from the entitlement offer?
Funds will primarily support the Pre-Feasibility Study at the Elizabeth Creek Copper-Cobalt Project, including drilling, engineering, and metallurgical test work. A portion will also cover working capital and costs associated with the raise.
5. Why is copper demand important for CODA’s growth prospects?
Copper is critical for electrification, renewable energy, and infrastructure. With global inventories at near-record lows and underinvestment in new supply, analysts such as Goldman Sachs
project sustained price strength. CODA’s Elizabeth Creek Project provides direct exposure to this long-term growth theme.
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DISCLAIMER: The information in this article does not constitute personal financial advice. Consult your adviser or stockbroker prior to making any investment decision
