Cobre Ltd (ASX:CBE) has moved to maintain its 14.43% holding in fellow African explorer Armada Metals Ltd (ASX:AMM) by participating in that company’s accelerated non-renounceable pro rata entitlement offer.
In the offer announced on September 21, fellow ASX-lister Armada is seeking to raise up to $2.08 million before costs.
Cobre has agreed to subscribe for a total of 15 million shares at a price of $0.02 per share for a total of $300,000 and should the Armada offer be fully subscribed, will maintain its current pro rata holding.
Use of funds
Funds raised by Armada will be applied toward Stage 1 exploration at the Bend Nickel Project in Zimbabwe along with continued exploration on the Nyanga Project in Gabon.
Funds will also be allocated to one-off costs associated with facilitating the entitlement offer and, to the extent there are any surplus funds, these will be allocated towards working capital.
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Cobre is focusing its African efforts in Botswana where it has exploration projects on the prolific Kalahari Copper Belt.
The company, through its investment, also has an interest in Armada’s progress in Zimbabwe and Gabon and is particularly looking forward to updates on the first stage exploration and drilling program at the Bend Project scheduled for this quarter.
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