Metal Tiger PLC (AIM:MTR, OTC:MRTTF, ASX:MTR) said it has invested approximately A$1mln in Cobre Limited’s A$5mln placing at A$0.15 per new ordinary share for a total of 6,666,667 new ordinary shares in Cobre.
Metal Tiger said its subscription will be subject to Cobre shareholder approval at an extraordinary general meeting, expected to be held in late February / early March 2023.
In addition, Cobre said it intends to launch a share purchase plan to eligible shareholders in Australia and New Zealand to raise an additional A$1mln and will issue circa A$0.7mln in shares for services.
Proceeds from the placing, together with existing cash, will be used to accelerate exploration on Cobre’s tenement holding in the Kalahari Copper Belt in Botswana.
Following completion of the placing and assuming full take-up of the share purchase plan, Metal Tiger would be interested in 53,656,803 shares in Cobre, representing approximately 19.66%.
For the half-year ended 31 December 2021, Cobre had a net loss of A$3,650,299 and net assets of A$14,845,170.
Sandfire Disposal and Margin Lending Facility Update
In a separate statement, Metal Tiger also announced that it has sold 250,000 shares in Sandfire Resources Limited at a price of A$5.38 net proceeds per share, raising gross proceeds of approximately A$1.35mln.
The company said the net sale proceeds will be part-applied to reducing the outstanding loan balance on the new A$15mln Margin Lending and Drawdown Facility with a sub-fund of SC Lowy SI II (SG) VCC, announced on 14 December 2022, with the balance of A$740,000 proceeds to be used for working capital and other investment opportunities.
Following the above disposal, Metal Tiger has 4,762,626 Sandfire shares within the Facility against an outstanding loan balance of A$7.7mln, and Metal Tiger will be interested in 5,930,168 Sandfire shares, representing approximately 1.30% of Sandfire’s issued share capital. 1,167,542 Sandfire shares will be secured under the equity derivative financing arrangement with a global investment bank.