The resources investor said it had subscribed A$2.4mln (£1.25mln) in Cobre’s ”heavily oversubscribed” initial public offering (IPO), and as a result, will hold just shy of a 20% stake in the firm when it floats.
The total value of Metal Tiger’s 19.35mln shares in Cobre at the IPO price of A$0.20 (10p) per share will be A$3.9mln (£2mln), giving the firm an unrealised paper profit of around A$1mln (£0.52mln).
“We made our initial investment [in Cobre] in September 2019 and consider it a testament to the team at Cobre and their assets that they will have achieved a listing on the ASX only five months after Metal Tiger’s initial investment”, said Metal Tiger chief executive Michael McNeilly.
Cobre has a controlling stake in a group of tenements known as the Perrinvale copper project in Western Australia.
Metal Tiger shares were steady at 1.3p in mid-morning trading on Friday.