Koba Resources (ASX:KOB) is raising $4M through a placement to strategic investors to expedite exploration at their lithium-pegmatite projects in Canada and Australia.

The shares will be issued at $0.15 per share, a 7.1% premium to the previous closing price, and will be settled on April 11, 2022.

Cygnet Capital will be paid a 6% capital raising fee and will receive 4 million unlisted options with a $0.30 exercise price and an expiry date of December 27, 2024.

The Placement is subject to shareholder approval to be obtained at a meeting currently scheduled for April 4, 2023.

Following the announcement, shares of Koba Resources were up 14.29%.