Cannindah Resources Limited (ASX: CAE) (Cannindah or the Company) has secured a significant capital injection to push forward its flagship Mt Cannindah Project in Queensland. The Company announced a combined placement and Share Purchase Plan (SPP) targeting gross proceeds of approximately AUD 17 million before costs. That capital will fund an aggressive round of copper-gold drilling across multiple high-priority targets, directly building on the strong results delivered in late 2025.
The placement closes at AUD 0.045 per share, representing a 15.4% discount to the five-day volume weighted average price (VWAP) and a 9.7% discount to the 15-day VWAP. Despite that discount, the structure of the raise tells a clear story about where investor confidence sits.
Figure 1: Mt Cannindah Project map showing the locations of the Cannindah Breccia, Eastern Target, and Southern Porphyry Target. [Cannindah Resources]
How the AUD 17 Million Raise is Structured
The capital raise splits into two main components. The placement targets AUD 15 million in total, split across two tranches. Tranche 1, worth AUD 11.075 million, draws on existing shareholder approval capacity and settles on 6 February 2026. Tranche 2, an additional AUD 3.925 million, requires shareholder sign-off at an Extraordinary General Meeting scheduled for mid-March 2026.
The Share Purchase Plan gives eligible Australian and New Zealand shareholders the chance to top up their holdings at the same price, up to AUD 30,000 per shareholder. The SPP opened on 6 February and closes on 20 February 2026, with new shares expected to be issued on 24 February.
A total of 333,333,334 new shares will be issued across the placement. Post-placement, the Company will hold approximately AUD 16 million in cash before costs, giving it a well-stocked war chest for the drilling campaigns ahead.
Figure 2: Breakdown of placement tranches and SPP terms [Cannindah Resources]
Strong Institutional and Board Participation
Lion Selection Group has committed AUD 2 million to the placement, securing a 3.3% stake in the Company. That kind of anchor investment from a strategic fund signals real confidence in the Mt Cannindah asset. Canaccord Genuity (Australia) Limited is acting as lead manager for the raise, with Steinepreis Paganin appointed as legal advisor.
Directors are also putting their money where their mouth is. Board members have committed AUD 0.225 million through Tranche 2 participation. Chairman Tony Rovira noted that the placement reflects strong institutional interest in the project’s potential, particularly given the quality of recent drilling results and the size of the targets still to be tested.
Figure 3: Isometric view of the Cannindah Breccia MRE, showing copper grade blocks above 1%, 0.5%, and 0.1%. [Cannindah Resources]
Where the Funds Are Going
The fresh capital is earmarked for four main activities. The bulk goes toward expanding the existing Cannindah Breccia Mineral Resource Estimate, currently sitting at 14.5 million tonnes at 1.09% CuEq. RC drilling will target known high-grade extensions identified in the late-2025 campaign, particularly the near-surface zones that showed exceptional continuity.
Figure 4: Planned allocation of placement proceeds [Cannindah Resources]
Diamond drilling at the Southern Porphyry Copper-Gold Target is set to begin within approximately four weeks. This is a particularly watched catalyst. The Southern Target hosts a substantial soil geochemical anomaly stretching 1,500 metres by 100 to 700 metres, with copper, gold, and molybdenum readings all well above background levels. Trenching and rock chips have already returned high-grade hits, and an exploration target estimate of 64 to 114 thousand tonnes CuEq was announced in October 2025.
The Eastern Target also features in the exploration plan. Spanning 1,700 metres by 400 metres, it hosts the strongest IP chargeability anomaly within the Mt Cannindah district. Three scout holes have already been drilled to depths exceeding 320 metres, and further work will continue once the Southern Porphyry program gets underway.
Copper Market: Supply Deficits and Rising Demand
Cannindah’s capital raise comes at a point when global copper fundamentals are particularly compelling. Spot copper hit a record AUD 13,310 per tonne on 12 January 2026, surging nearly 20% in just a few weeks on the back of supply disruptions and structural demand growth.
The global copper market is projected to expand from 27.34 million tonnes in 2026 to 33.27 million tonnes by 2031, growing at a CAGR of 4.01%. Asia-Pacific accounts for around 70% of consumption, with China dominating on the refining side.
Figure 5: Global Copper market size in million tons [Mordor Intelligence]
Supply hasn’t kept pace with demand. The International Copper Study Group forecasts a refined copper deficit of 150,000 tonnes for 2026, while Morgan Stanley’s estimate sits at 590,000 tonnes. Mine production growth has slowed to between 0.9% and 2.3%, weighed down by declining ore grades below 0.7% and persistent permitting delays across major producing countries.
Three demand drivers stand out. Electrification and renewable energy projects consume roughly five times more copper per megawatt than fossil fuel plants. Electric vehicles are set to reach approximately 116 million units globally in 2026, each using three to four times more copper than a conventional car. And the rapid buildout of AI data centres, with hyperscale facilities deploying over 2,000 tonnes each, is adding a fresh layer of demand that simply didn’t exist a decade ago.
Figure 6: Global copper supply-demand forecast [Fastmarkets]
Investor Outlook
As of 3 February 2026, Cannindah Resources shares were trading at AUD 0.050 per share on the ASX. The placement price of AUD 0.045 per share sits at a discount to the current market price, offering participating shareholders an immediate entry advantage. The Company’s market capitalisation stands at approximately AUD 57.77 million.
Figure 7: CAE Price Chart [ASX]
With approximately AUD 16 million in cash post-placement, a well-defined set of drill targets, and a copper market defined by tightening supply, the Company is set to deliver a steady flow of news over the coming months. The Southern Porphyry drilling campaign in particular has the potential to materially increase the project’s resource base and attract fresh investor interest.
For those already watching Cannindah, the SPP window closing on 20 February 2026 offers a clear entry point at the same price as institutional investors. The next major milestones will centre on early assay results from the Southern Porphyry diamond drilling and further RC results from the Cannindah Breccia infill program.
