(Alliance News) - Natural resources-focused investor Metal Tiger PLC said on Friday it has entered an agreement to acquire 20% of copper exploration company Cobre Pty Limited.
Under the terms of the deal, Metal Tiger will be able to invest AUD500,000 or GBP278,589 for a 15% stake in Cobre.
In addition, Metal Tiger could invest a further AUD2.0 million as part of an IPO fundraise which is expected to be completed in 12 months, taking the company's stake in Cobre to 20%.
Metal Tiger will issue Cobre 1.7 million new ordinary shares at a price of 1.45 pence each in exchange for a 30 day exclusivity period in which Metal Tiger would be able to complete due diligence.
The investors said it has already completed a "substantial amount" of due diligence.
Shares in Metal Tiger were flat at 1.45 pence each in London on Friday afternoon.