Metal Tiger PLC (LON:MTR) plans to buy about 20% of Cobre Pty Ltd as part of the Australian copper explorer’s initial public offering fundraise.
The miner has entered into a binding term sheet that will allow it to invest an initial A$500,000 for a 15% stake in Cobre and a further A$2mln within the next year, taking its total holding to about 19.99% upon listing.
Cobre owns the Perrinvale Copper Project in central Western Australia, where a 1,000m drilling programme interested high grade volcanogenic massive sulphide base metal and gold mineralisation at shallow depth.
The best assayed result was 5m at 9.8% copper, 3.2 grams per tonne (g/t) gold, 34 34g/t silver and 3.1% zinc.
Metal Tiger has issued Cobre with more than 1.6mln in new shares at 1.45p each in exchange for a 30-day exclusivity period, which will allow time to complete due diligence and implement formal documentation.
The group said it 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 the IPO, Metal Tiger will be able to appoint a nominee director to the board of the Cobre.