(Alliance News) - Natural resources-focused investor Metal Tiger PLC on Monday said it will have a 20% holding in Cobre Pty Ltd when it makes a further investment in the company ahead of its initial public offering.
Metal Tiger has initially agreed to subscribe to 6.6 million Cobre shares for AUD500,280, roughly GBP278,623, which represents a 15% stake in the company. This initial investment values Cobre's shares at roughly AUD0.08 each.
It will then invest an additional AUD2.0 million to take its total stake in Cobre to just below 20%.
Metal Tiger will also have the right to appoint a director to Cobre's board as part of a future IPO which is expected to conclude in 12 months. Metal Tiger did not confirm which stock exchange Cobre will list its shares on.
In the same announcement, Metal Tiger also noted that an airborne electromagnetic survey of the Perrinvale project, Australia has begun. The survey of the project, which Cobre owns 80% of, is expected to take one week.
Chief Executive Michael McNeilly said: "We are delighted to have completed this investment into Cobre and to see rapid progress being achieved at the world-class Perrinvale copper project. The helicopter-borne electromagnetic geophysical survey programme should help to accelerate the identification of additional volcanogenic massive sulphide style high-grade copper zinc gold mineralisation within this highly prospective area. We see significant follow-on potential at Perrinvale and look forward to seeing this being realised in the months ahead.
Shares in Metal Tiger were 2.8% lower at 1.22 pence each in London on Monday afternoon.