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Doug Bright
True North Copper has bolstered its coffers with firm commitments for an $18 million placement and plans for a further $2 million share purchase plan as it gets set to hit the accelerator on its Queensland copper assets.
The raise was upsized from an initial $15 million target on the back of strong demand and comes at a time when the copper market is running hot, with prices recently pushing near-record levels of US$6.7 (A$9.45) per pound. The strong investor appetite for copper exposure, particularly in proven jurisdictions such as Queensland’s Mt Isa region, has also fuelled a string of corporate moves, underscoring the strategic value of advancing projects with a clear development pipeline.
Proceeds from the capital injection will be used to finalise the acquisition of its flagship Mt Oxide project through a $7.5 million deferred consideration payment to Perilya, clearing the liability from the books and leaving the company with a cleaner balance sheet. The balance of the funds will be directed towards the company’s three-pronged “grow, develop and discover” strategy across its Mt Oxide and Cloncurry copper projects.
The placement will see 48.6 million new shares issued at a price of 37 cents each, representing an 8.7 per cent discount to the company’s 15-day volume-weighted average price. It was strongly supported by major shareholder Tembo Capital and saw several new institutional investors join the register.
‘This funding represents an important next step for True North.’
True North Copper managing director Andrew Mooney
The raising will be conducted in two tranches, with the first $12.2 million tranche to be settled this month. The second $5.8 million tranche, which includes a $2 million commitment from Tembo and $500,000 from non-executive Chairman Paul Cronin, is subject to shareholder approval at a meeting expected in October.
In addition, the company will launch a share purchase plan (SPP), capped at $2 million, allowing eligible existing holders to subscribe for up to $30,000 of new shares at the same price as the placement.
With its strengthened balance sheet and the final payment for Mt Oxide ticked off, True North can now plough some funds into its growth projects. At Mt Oxide, drilling will continue at the impressive Aquila discovery, which has now been traced over a strike length of more than 1.8km since being first identified in mid-2025.
True North Copper managing director Andrew Mooney said: “This funding represents an important next step for TNC, providing for the final deferred payment associated with our acquisition of Mt Oxide while funding the next phase of growth across our copper portfolio. At the Mt Oxide Project, our 2026 exploration and drilling have continued to expand Aquila and build our understanding of the scale, geometry and higher-grade zones within the mineralised system.”
Previous drilling at Aquila returned a suite of high-grade copper hits including a 59-metre intersection at 1.77 per cent copper and a solid seven-metre section going 7.9 per cent copper. Management says the new funding will support work through to 2027 to expand the mineralised system and define higher-grade zones.
At its Cloncurry copper project, the company is progressing a prefeasibility study (PFS), with completion targeted for this year’s final quarter. The project already contains an estimated mineral resource of 129,000 tonnes of copper and 152,000 ounces of gold, with the PFS expected to outline a pathway to near-term production.
With its saddlebags full of cash, True North appears to be in the box seat to execute a multi-front strategy in one of Australia’s premier copper districts. With drilling continuing to extend the company’s stellar Aquila discovery and a key economic study at Cloncurry just around the corner, there should be plenty of news flow to keep the market interested.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
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