Completion of Acquisition of Minority Shares in Toucan
Completion of Acquisition
- Cobre (CBE) completes acquisition of minority stake in Toucan Gold Pty Ltd (Toucan), which is the 100% holder of the high-grade Perrinvale VHMS Project located in Western Australia;
- Toucan is now a 100% wholly owned subsidiary of Cobre; and
- This acquisition represents a Project Accretive acquisition for all existing shareholders leading into future exploration activities.
In addition to the cash component, the balance of the consideration for the remaining Toucan shares acquired by Cobre, is through the issue of a total of 6,160,000 new CBE shares which rank equally with Cobre's existing fully paid ordinary shares on issue. As a condition of the agreement, the new shares are subject to escrow until 31 January 2022.
Commenting on the completion of the acquisition, Cobre's Managing Director and Executive Chairman, Martin Holland said:
"The acquisition of the remaining shares in Toucan is a great milestone for the Company as Toucan is now a wholly owned subsidiary of Cobre. The Cobre Board considers this transaction important to secure 100% ownership of the high-grade Perrinvale VHMS Project through Toucan before commencing further exploration. The 20% ownership Cobre has now acquired was previously free carried through to definitive feasibility study."
Cobre also advises that on 12 May 2020, as part of the completion of the Toucan acquisition, it issued a total of 6,160,000 new fully paid ordinary shares (Shares) in the Company at a deemed issue price of $0.20 each.
About Cobre Limited
Cobre Limited (ASX:CBE) is a Sydney based company focused on mineral exploration in Western Australia. The company recently discovered a new high grade VMS deposit enriched in Copper, Gold, Zinc and Silver in Western Australia from its maiden drill program in June 2019.