Cobra Resources plc (LSE: COBR), the South Australian critical minerals explorer advancing the Wudinna Rare Earth Project and the Manna Hill Copper Project, has announced the exercise of 51,698,521 warrants in total, resulting in the issue of 20,729,928 new ordinary shares. Of these, 18,229,928 shares were issued on a cashless basis, with the remaining 2,500,000 shares issued for cash consideration of £50,000. The transaction reduces overall dilution to existing shareholders, as 30,968,593 warrants were surrendered and cancelled rather than converted into new shares.

Key Points

  • Cobra Resources plc (LSE: COBR) is a South Australian mineral exploration company
  • 49,198,521 warrants were exercised on a cashless basis, producing 18,229,928 new shares; a further 2,500,000 warrants were exercised for £50,000 cash
  • New ordinary shares expected to be issued on 9 November 2026; total voting rights will stand at 1,123,409,472 following completion
  • Investors should watch the Concert Party's 31.26% voting stake and any further resource or development updates at Wudinna and Manna Hill

Cashless and Cash Warrant Exercises Produce 20.7 Million New COBR Shares

Cobra received valid exercise notices covering 49,198,521 warrants on a cashless basis. Of these, 46,857,000 carried an exercise price of 2.0 pence per share and produced 17,571,375 new ordinary shares, while 2,341,521 warrants priced at 2.3 pence produced a further 658,553 shares. Separately, 2,500,000 warrants priced at 2.0 pence were exercised for cash, generating £50,000 in proceeds. The cashless mechanism meant 30,968,593 warrants were surrendered and cancelled, limiting the total number of shares issued and thereby moderating dilution relative to a full cash exercise across all warrants.

Concert Party Holds 31.26% of Cobra Following New Share Issuance

The announcement identifies Mutual Trust Pty Ltd and Nurragi Investments Pty Ltd as a Concert Party under the City Code on Takeovers and Mergers. Together, they exercised 40,400,000 warrants at 2.0 pence per share on a cashless basis, receiving 15,150,000 new ordinary shares while 25,250,000 of their warrants were cancelled. Following the full issuance of new shares on 9 November 2026, the Concert Party will hold 351,202,905 ordinary shares, representing approximately 31.26 per cent of total voting rights. Investors monitoring Cobra's shareholder structure should note this concentrated holding in the context of Takeover Code obligations.

Wudinna Rare Earth and Manna Hill Copper Projects Underpin Cobra's Strategy

Cobra is developing two South Australian critical minerals assets. The Wudinna ionic rare earth project hosts a JORC-compliant maiden mineral resource estimate of 150 million tonnes grading 470 parts per million total rare earth oxides, which will underpin a forthcoming Scoping Study. The company is targeting low-disturbance in situ recovery methods, aiming for bottom-quartile production costs. At Manna Hill in the Nackara Arc, drilling has confirmed copper-gold mineralisation across multiple prospects, including shallow skarn-hosted discoveries and indications of a potentially larger porphyry copper-gold system.

Total Voting Rights Rise to 1,123,409,472 After 9 November 2026 Issuance

All new ordinary shares will be issued under Cobra's existing block listing and are expected to settle on 9 November 2026, credited as fully paid and ranking pari passu with existing shares. Following completion, the company's issued share capital will total 1,123,409,472 ordinary shares, each carrying one voting right. Cobra holds no shares in treasury. Shareholders should use this figure as the denominator when calculating whether they must disclose interests or changes in interests under the FCA's Disclosure Guidance and Transparency Rules.