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Metal Tiger gets shares in Australia's Cobre ahead of planned listing

The AIM-listed firm will receive an additional 750,000 shares for a nominal price of AU$1, to allow Cobre to boost its offering and raise AU$10mln

Metal Tiger Plc - Metal Tiger gets additional shares in Australian group Cobre ahead of planned listing
Cobre holds Perrinvale copper project in central Western Australia

Metal Tiger Plc (LON:MTR) got a boost as the company effectively got free shares in Australian group Cobre Pty Ltd two months before the latter is due to list on the Australian Stock Exchange.

The AIM-listed firm will receive an additional 750,000 shares for a nominal price of AU$1, to allow Cobre to boost its offering and raise AU$10mln and to "compensate" Metal Tiger for the dilutive effects of the increased fundraise.

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The conditions agreed in September still apply, whereby Metal Tiger committed to invest at least AU$2mln and acquire further shares reaching a maximum total stake of 19.99%.

Metal Tiger will with the new shares hold a 15.7% stake in Cobre, which manages the Perrinvale copper project in central Western Australia, where an airborne geophysical survey is imminent.

A 1,000 metres drilling programme at Perrinvale earlier this summer hit high-grade VMS base metal and gold mineralisation at shallow depth at the Schwabe prospect, with highlight results including 5m at 9.8% copper, 3.2 grams per ton (g/t) gold, 34.0g/t silver and 3.1% zinc from 50m.

The airborne survey will cover around 114 square kilometres covering a 22km strike length of the Panhandle Greenstone Belt, where at least eight potential base metal targets have been identified.

“The board is delighted to be able to assist Cobre as it seeks to attract further investment and to ensure that there is adequate allocation for other investors to enable Cobre to take more capital if needed,” said Metal Tiger’s chief executive Michael McNeilly.

Shares jumped 7% to 1.29p on Wednesday morning.

Quick facts: Metal Tiger Plc

Price: 1.2 GBX

AIM:MTR
Market: AIM
Market Cap: £18.71 m
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