(Alliance News) - Natural resources focused investor Metal Tiger PLC on Wednesday said it has altered terms of its previously announced share subscription agreement with Cobre Pty Ltd to allow Cobre to increase the size of its initial public offering and raise AUD10 million, around GBP5.3 million, on the Australian Stock Exchange.
The London-based company has signed a so-called "Side Letter" with Cobre under which Metal Tiger will be issued an additional 750,000 Cobre shares for AUD1 per share, in order to compensate Metal Tiger for the dilutive effects of the increased Cobre fundraise.
The issue of additional shares will increase Metal Tiger's aggregate pre-IPO shareholding to 7.4 million Cobre shares, representing around 16% of Cobre's then issued share capital.
In September, Metal Tiger has agreed to invest a minimum of AUD2 million at AUD0.20 per share in the Cobre IPO which, assuming an increased fundraise of AUD10 million, will result in Metal Tiger's holding in Cobre increasing to around 18% on Cobre's admission to trading on the ASX.
Michael McNeilly, chief executive of Metal Tiger, said: "The board is very pleased with the speed at which the team and advisers of Cobre have worked to progress the planned IPO on the ASX following our initial investment in September. 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, and to accommodate the expected high demand for the Cobre IPO."
Metal Tiger shares in London were up 5.4% at 1.26 pence each on Wednesday afternoon.
By Tapan Panchal; tapanpanchal@alliancenews.com
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