Cobre Successfully Raises A$6.7M for Botswana Exploration
Sydney, April 15, 2021 AEST (ABN Newswire) - Cobre Limited (
ASX:CBE) is pleased to announce the successful raising of A$6.7 million (before costs) at $0.17 per share via a two-tranche placement to sophisticated and institutional investors with the funds raised to be used primarily to meet the capital requirements for exploration under the Company's joint venture African investment, with Metal Tiger plc (MTR), through Kalahari Metals Ltd (Placement).
Highlights:
- Placement attracted significant demand from both existing and new sophisticated and institutional investors;
- Total raise of A$6.7 million comprised by a two-tranche placement, the first being a placement of A$5.3m and the second being a placement to Metal Tiger plc, the Company's largest shareholder, of $1.4m, subject to shareholder approval;
- Metal Tiger plc will maintain a ~21% interest via a further A$1.413 million investment under the second tranche of the placement; and
- Combined with existing cash reserves, Cobre is well capitalised for significant exploration in Botswana with more than A$10 million.
Cobre received significant demand for the Placement from high quality institutional and high net worth investors. The Placement was conducted at a price of $0.17 per share representing a:
- 12.8 % discount to the last traded price of $0.195;
- 16.8% discount to the 5- day Volume Weighted Average Price (VWAP) of $0.204; and
- 16.5% discount to the 15- day VWAP of $0.204.
Shareholder approval is not required for the first tranche of the Placement which was undertaken within the Company's existing capacity pursuant to the ASX Listing Rules ('LR') 7.1 and 7.1A. Cobre will be issuing a total of 18,577,985 new shares pursuant to LR 7.1 and 12,551,990 shares pursuant to LR 7.1A. All new shares issued under the Placement will rank pari passu with the existing ordinary shares on issue in the capital of the Company.
Cobre will issue 8,311,765 new ordinary shares to MTR at a price of $0.17 per share under the second tranche of the Placement, subject to shareholder approval which Cobre will seek to obtain at a shareholders' meeting later this year.
Canaccord Genuity (Australia) Limited acted as lead managers to the Placement.
Commenting on the successful capital raising, Martin Holland, Cobre's Executive Chairman and Managing Director, said:
"I thank existing top twenty shareholders for continued support through this capital raise and welcome new institutional and sophisticated investors to the Company. Together we look forward to progressing exploration in the prolific Kalahari Copper Belt. KML, being a Joint Venture between Cobre and Metal Tiger plc, now has two well-funded owners capable of rapidly progressing exploration of its advanced coppersilver targets within the attractive portfolio of Kalahari Copper Belt tenements."
To view the indicative timetable, please visit:
https://abnnewswire.net/lnk/33W7CC5H
About Cobre Limited
Cobre Limited (ASX:CBE) is a copper and base-metals explorer with projects in Western Australia and Botswana. The Company recently discovered a new high-grade VMS deposit enriched in Copper, Gold, Zinc and Silver in Western Australia, and is currently exploring approximately 8,100 km2 of tenements within the Kalahari Copper Belt (KCB) in Botswana.
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