Cobre (ASX:CBE) raises $7m for Botswana exploration

• Cobre (CBE) successfully raises $7 million via a share placement to fast-track exploration in Botswana
• The company will focus its exploration work on a tenement package held by Kalahari Metals (KML) after striking a deal to buy the remaining 49 per cent of KML it does not already own
• Cobre will undertake the placement in two tranches, with placement shares priced at 15 cents — a 16.7 per cent discount to Cobre’s closing price of 18 cents on August 2
• Subject to shareholder approval, Cobre’s biggest shareholder, Metal Tiger, will maintain its 21 per cent shareholding via a $1.5 million investment as part of the placement
• Cobre is up 5.56 per cent with shares trading at 20 cents at 1:19 pm AEST

Cobre (CBE) has successfully tapped investors for $7 million via a share placement to fast-track exploration in Botswana.

The company will focus its exploration work on a tenement package held by Kalahari Metals (KML) in Botswana, with Cobre recently signing a share purchase deed to acquire the remaining 49 per cent of KML which it does not already own.

Cobre will undertake the placement in two tranches, with placement shares priced at 15 cents — a 16.7 per cent discount to the company’s last closing price of 18 cents on August 2.

Subject to shareholder approval, Cobre’s biggest shareholder, Metal Tiger, will maintain its 21 per cent shareholding in Cobre via a $1.5 million investment under the second tranche of the placement.

Also subject to shareholder approval, Cobre’s drilling services provider in Botswana, Mitchell Services (MSV), has subscribed for US$300,000 (A$430,910) of Cobre shares to be set off against drilling services.

Following the issue of shares, Cobre will grant Mitchell exclusive rights to provide drilling services to any of its projects in Botswana.

“The Cobre team is pleased to have secured the funds required to continue to rapidly progress exploration on KML’s tenement package in the Kalahari Copper Belt in Botswana following on from the successful results of the first three diamond holes announced over the past 10 days,” Cobre Executive Chairman and Managing Director Martin Holland said.

“The announcement of the third drill hole further illustrates the strike length of intersected copper mineralisation in this exciting target which remains open-ended.

“The footprint of mineralisation, which now extends over more than three kilometres, is very much in-line with known deposits in the Kalahari Copper Belt.”

Cobre was up 5.56 per cent with shares trading at 20 cents at 1:19 pm AEST.