Australian copper producer 29Metals is moving to capitalise on robust metal prices by launching a major capital raise aimed at accelerating operations at its key mines in Western Australia and Queensland.
Equity Raise Details and Use of Funds
The company announced a fully underwritten one-for-3.66 share rights issue to raise $150 million in new equity. The offer is pitched at 40 cents per share, which represents a substantial 35.5 per cent discount to its closing price on Monday, 19 January 2026. Financial giant Macquarie is underwriting the entire offer.
A significant portion of the proceeds, approximately $90 million after costs, is earmarked for the company's Golden Grove mine in Western Australia's Mid-West region. This funding will specifically support development of the high-grade Xantho Extended zone, where progress has been hampered by challenging ground conditions.
Strategic Focus on Golden Grove
The capital injection is strategically timed to leverage the current favourable copper market. The focus on Golden Grove's Xantho Extended zone underscores the mine's importance to 29Metals' future production profile. The company has identified this area as a key growth asset, but unstable ground has previously impacted development work, necessitating this fresh funding to advance the project securely and efficiently.
Market Context and Future Outlook
This equity raise signals 29Metals' confidence in its asset base and the long-term outlook for copper. The funds will provide the financial flexibility to tackle operational challenges head-on and ramp up production from its core assets. The successful completion of this rights issue, backed by Macquarie, is expected to strengthen the company's balance sheet and position it to deliver increased output from both its WA and Queensland operations in the coming years.
The announcement was made public on Tuesday, 20 January 2026, with further details anticipated from the company as the rights issue process gets underway.
