Culpeo Secures Funding To Advance Copper Exploration

Culpeo Minerals Limited (“Culpeo” or the “Company”) (ASX:CPO, OTCQB:CPORF) is pleased to announce that it has received binding commitments for a placement to raise approximately A$1.224 million (before costs) to fund exploration activities at its Fortuna and Lana Corina Projects in Chile. The projects are highly prospective for near-surface, copper mineralisation, with several broad target zones being identified as high priority targets which the Company intends to test in the near term.

HIGHLIGHTS

• Firm commitments received to raise A$1.224 million (before costs) via a placement to institutional and sophisticated investors (Placement).
• Proceeds to primarily be allocated to exploration activities at the Fortuna Project, the recent acquisition, which increased the Company’s copper exploration landholdings by 300% in the highly prospective coastal metallogenic belt of Chile.
• Additional drilling to be undertaken at the Company’s Lana Corina Project which delivered downhole drill intersections of 257m @ 1.10% CuEq and 173m @ 1.09% CuEq¹.
• Placement of shares and attaching options to occur in two tranches, with option issuance and second tranche of shares subject to shareholder approval.

“We are very pleased with the investor response to this raising which will allow us to advance our high-impact exploration activities within the coastal metallogenic belt of Chile.

“The combination of our recently acquired Fortuna Project with the copper-molybdenum discovery at the Lana Corina Project provides a compelling exploration opportunity with further significant discovery potential.

“Thank you to existing shareholders who have supported the raise, as well as to all our new investors who we warmly welcome to the Culpeo register as we continue to unlock the inherent value of our project portfolio”.

PLACEMENT

The Placement comprises the issue of approximately 38.25 million new fully paid ordinary shares in the Company to professional and sophisticated investors at an issue price of $0.032 per share (Placement Shares), to raise approximately $1.224 million (before costs) comprising:

• Tranche 1: Approximately $0.62 million via the issue of approximately 19.37 million Placement Shares within the Company’s placement capacity under ASX Listing Rule 7.1 and 7.1A; and
• Tranche 2: Approximately $0.6 million via the issue of approximately 18.87 million Placement Shares, subject to obtaining shareholder approval at a General Meeting of the Company’s shareholders (GM).

The Offer Price is $0.032 per Placement Share which reflects a:

• 20.0% discount to the last close price of $0.040 on 29 August 2023
• 25.4% discount to the 5-day volume weighted average price of $0.043

Investors will receive 1 free attaching option for every 2 Placement Shares subscribed for, on the terms and conditions set out in the Explanatory Memorandum accompanying the Notice of Meeting and subject to shareholder approval at the GM (Attaching Options). The Attaching Options are intended to be unquoted with an exercise price of $0.048 and the expiry date (exercisable anytime) two years from the date of issue.

Funds raised will be used for:

• mapping, sampling and drilling at newly acquired Fortuna Project with four drill-ready targets identified;
• drilling at Lana Corina Project;
• acquisition funding payments of US$10k a month; and
• costs associated with the capital raising.

LEAD MANAGER

The Company engaged Unified Capital Partners Pty Ltd (UCP) as Lead Manager to the Placement (Lead Manager) (excluding the Tranche 2 North America placement). The Lead Manager (or its nominee) will receive a 6% management and selling fee on all funds raised under the Placement. The Company will also issue the Lead Manager (or its nominees) 2,000,000 Options (Lead Manager Options) upon full subscription of the Placement, subject to Shareholder approval to be sought at the GM. The Lead Manager Options will be issued on the same terms as the Attaching Options.

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