Placing to Raise up to £0.95 Million

RNS Number : 7783B

Cobra Resources PLC

15 February 2022

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 2014/596/EU WHICH IS PART OF DOMESTIC UK LAW PURSUANT TO THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) ("UK MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK MAR) IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.

15 February 2022 

Cobra Resources plc

 ("Cobra" or the "Company")

Placing to Raise a Minimum of £0.8 Million and up to £0.95 Million

Cobra (LSE: COBR), an exploration company focused on advancing the Wudinna Project in South Australia, announces an equity placing to raise a minimum of £0.8 million and up to £0.95 million, before expenses (the "Placing").

Transaction Highlights

· P lacing to raise a minimum of £0.8 million and up to £0.95 million, before expenses, through the issue of up to 63,000,000 new Ordinary Shares, in aggregate, to new and existing investors (the "Placing Shares")

· The Placing is being conducted by way of an accelerated bookbuild, to be undertaken by SI Capital Limited and Taylor Collison who are acting as Joint Bookrunners, which will commence immediately following this announcement

· The participation of Taylor Collison, a South Australia based broker, is a result of considerable interest from Australian investors arising from the rare earths discovery in the Company's recent drilling programme

· The Placing Shares are to be issued at 1.5 pence per share which represents a discount of approximately 15% to the volume-weighted average share price in the 10 days preceding yesterday's closing share price

The transaction highlights above and the summary announcement below should be read in conjunction with the full text of the announcement set out below.

The Company intends to use the funds raised for working capital purposes, which includes the Company's 2022 exploration work programme which will see the Company achieve its 75% farm-in commitment through:

1.  Accelerated definition works to test the extent of Rare Earth Element ("REE") Mineralisation proximal to existing gold occurrences. This will be done through re-analysis of retained samples from previous drilling programmes and will be undertaken in four stages:

i.  550 samples from 14 holes at Baggy Green that will test the southern continuity of the mineralisation intercepted at Clarke

ii. 100 samples from three holes at Barns and White tank to test the potential for REE occurrence

iii. Further pulp analyses of additional holes from Clarke and Baggy Green to expand the mineralisation footprint (subject to results in (i))

iv. Approximately 1,200 regional samples to test for REE mineralisation at locations that are interpreted to yield REE enrichment within saprolite clays

2.  Reverse Air Core drilling designed to follow up REE results and further refine regional exploration targets

3.  Reverse Circulation drilling of priority REE, gold and Iron Oxide Copper Gold ("IOCG") targets

4.  Regional geophysics to advance additional targets

5.  Update to existing resource estimates

Greg Hancock, Chairman of Cobra, commented:

"The participation in the Placing of Taylor Collison, a well-regarded Australian financial services firm, reflects the high level of interest we have received in the Company's recent rare earths discovery. While there remains much work to be done to refine the extent of this discovery and understand its potential, there is no doubt that the occurrence of rare earths above defined gold mineralisation places Cobra in a unique position in the sector. Taylor Collison is experienced in facilitating successful exploration of rare earths projects in Australia and we see their participation as a positive reflection of the potential to grow our discovery.

The funds being raised in the Placing will enable Cobra to activate a multi-pronged 2022 work programme that will focus on further expanding the REE mineralisation footprint, as well as drilling priority gold and IOCG targets. We have an exciting period ahead of us."

Bookbuild

The Placing is not being underwritten. The Joint Bookrunners will commence a book building process in respect of the Placing (the "Bookbuild"), which will start with immediate effect following the release of this Announcement. 

The timing of the closing of the Bookbuild and allocations shall be at the discretion of Cobra and the Joint Bookrunners.

A further announcement will be made following the close of the Bookbuild.

By choosing to participate in the Placing and by making a verbal offer to acquire Ordinary Shares to be issued under the Placing, investors will be deemed to have read and understood this announcement in its entirety.

The person who arranged for the release of this announcement on behalf of the Company was Rupert Verco, CEO of the Company.

Enquiries:

Cobra Resources plc Rupert Verco (Australia) Dan Maling (UK)	via Vigo Consulting [phone]
SI Capital Limited (Joint Broker) Nick Emerson Sam Lomanto	[phone]
Taylor Collison Limited Craig Ball	[phone]
Peterhouse Capital Limited (Joint Broker) Duncan Vasey Lucy Williams	[phone]
Vigo Consulting (Financial Public Relations) Ben Simons Charlie Neish Kendall Hill	[phone]

The person who arranged for the release of this announcement was Rupert Verco, CEO of the Company.

About Cobra

Cobra's Wudinna Gold Project is located in the Gawler Craton which is home to some of the largest IOCG discoveries in Australia including Olympic Dam, as well as Prominent Hill and Carrapateena. Cobra's Wudinna tenements contain extensive orogenic gold mineralisation and are characterised by potentially open-pitable, high-grade gold intersections, with ready access to nearby infrastructure. Recent drilling has discovered Rare Earth Mineralisation proximal to and above gold mineralisation. The grades, style of mineralogy and intercept widths are highly desirable. In addition, Cobra has over 22 orogenic gold prospects, with grades of between 16 g/t up to 37.4 g/t gold outside of the current 211,000 oz JORC Mineral Resource Estimate, as well as one copper-gold prospect, and five IOCG targets.

Wudinna Project Description

The Eyre Peninsula Gold Joint Venture comprises a 1,912 km² land holding in the Gawler Craton. The Wudinna Gold Project within the Joint Venture tenement holding comprises a cluster of gold prospects which includes the Barns, White Tank and Baggy Green deposits.

 

END

 

 

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