Cobre Signs Funding Term Sheet
- MTR has executed the Term Sheet, which, subject to the satisfaction of certain conditions precedent, will allow MTR to invest an initial A$500,000 for approximately 15% of Cobre and a further A$2,000,000 as part of an IPO fundraise, expected to complete within the next 12 months, to achieve an approximate aggregate 19.99% shareholding upon listing.
- MTR has issued Cobre 1,658,720 new ordinary shares of 0.01 pence each in the capital of the Company ("Ordinary Shares") at a price of 1.45 pence per share (the "MTR Shares") in consideration for Cobre granting MTR an exclusivity period of 30 days in which to complete due diligence and implement formal documentation;
- MTR has already completed a substantial amount of due diligence and is pleased to obtain exclusivity given the strong level of interest in the market to invest in the Project.
- On completion of an IPO, MTR will obtain a right to appoint a nominee director to the Board of the Cobre IPO entity.
- Circa 1,000m RC drilling programme at Perrivale intersected very high grade volcanogenic massive sulphide (VMS) base metal and gold mineralisation at shallow depth;
- The best assayed result was 5m @ 9.8% Cu, 3.2g/t Au, 34g/t Ag, 3.1% Zn.
- Preliminary ground EM survey completed at Perrinvale.
Martin Holland, Executive Director of Cobre, commented:
"The funding will assist in expediting the company from a private company into a public company with a focus on executing on the IPO of Cobre in the near term. Strategically, having Metal Tiger as a 19.99% cornerstone investor, not only provides the funding required but also validates Cobre's recent high-grade copper VMS discovery in Western Australia. Metal Tiger also comes with the technical expertise of Mr Terry Grammer, (prospector of the year 1999, plus being involved in many other major Australian mineral discoveries). More recently, Metal Tiger sold their share of the Botswana project to Australian copper company Sandfire Resources (SFR.AX), and will become one of the largest shareholders of that company on completion. The Cobre board is pleased to welcome Metal Tiger to the company."
Michael McNeilly, CEO of Metal Tiger, commented:
"We are delighted to enter into this term sheet with Cobre that provides the framework for a near-term investment in Cobre. As a Board, we are truly excited by the encouraging results achieved by Cobre to date as well as by the strong interest that has been shown in the Project. Discovering a potential high-grade VMS system is a major credit to the team at Cobre. Furthermore, the potential exists on the tenement package for an extended VMS system across a large proportion of the tenements. Such deposits are rare globally, so to encounter one in a stable jurisdiction like Australia is significant.
It is a testament to the Metal Tiger team and investment approach that we have managed to secure this term sheet and we look forward to working hard to complete our due diligence, agree definitive documents and complete the investment."
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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.