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Cobre sets the precedent

ew IPOs captured the attention of in-
Fvestors last year but though it’s only
early into 2020, attitudes towards fledg-
ling companies could change in the next
12 months.
Paydirt reported that just six new re-
sources floats hit the bourse in 2019, the
lowest total since 2015 when four com-
panies debuted on the ASX. At the time
of print, there were five companies pre-
paring upcoming floats to list on the ASX
sometime this year, following the lead of
Cobre Ltd.
Cobre made it to the bourse in January
with tremendous support for the Perrin-
vale base metals project, demonstrated
by a $10 million IPO at 20c/share.
The company can also earn an 80%
interest in the Sandiman base metals
project, 200km east of Carnarvon and
near to tenure held by IGO Ltd.
However, it is Perrinvale (80%), north- Cobre was set to drill at Perrinvale on the day it listed. A portable XRF reading
west of Menzies and Kalgoorlie, that has and visual observations from the first diamond hole at Schwabe confirmed VMS
drawn market attention with a VMS-style mineralisation over a 5.5m intercept from a depth of about 50m
copper, zinc and gold intercept from 50m
of 5m @ 9.8% copper, 3.2 g/t gold, 34 g/t holder with success in that commodity work and we got everything completed,
silver, 3.1% zinc, including 3m @ 12.6% gives a lot of confidence. Having institu- including securing water for the diamond
copper, 4.7 g/t gold, 43.7 g/t silver, 3.6% tional and well-known mining executives rig. So, when we listed, we could have a
zinc at Schwabe. support the company also adds to the rig on site and move forward with explo-
Such a strike from the maiden 1,000m range of things that you need to make a ration,” Holland said.
RC drilling programme in mid-2019 es- successful listing.” “We will look at the core itself and that
sentially set the wheels in motion for a Well-known AIM-listed investing com- will give us some more confidence and
listing, which occurred rather seamlessly pany Metal Tiger plc is Cobre’s corner- understanding of what we are sitting on
for Cobre. stone investor with 19.99% of the com- now. If we are seeing again what we ini-
“I think it sets a precedent for 2020; pany, while Northern Star Resources Ltd tially got, then we will be seeing a lot of
what we achieved as a company. There executive chairman Bill Beament is also interest from a lot of companies I would
was a lot of money on the sidelines, so among the top 20 shareholders. have thought.”
the overall raising was well sought after No doubt the interest in Cobre will Holland hopes that robust exploration
and we didn’t have to do a big roadshow build should it continue to hit paydirt from results will coincide with a copper price
either. I think it sets a precedent for com- drilling. rally spurred by supply/demand dynam-
panies from an exploration point of view,” At the time of listing, Western Dia- ics.
Cobre executive chairman Martin Hol- mond Drillers was mobilised on site for “The [resources] sector itself has been
land told Paydirt shortly after complet- the start of drilling at Perrinvale. looking ready for a run and a couple of
ing his third IPO. The first hole of the current pro- junior companies have done quite well in
“It wouldn’t surprise me to see more in- gramme at Perrinvale, which includes the space. The commodity itself is going
terest in the sector and more companies the Schwabe, Zinco Lago, Ponchiera through a losing streak at the moment
having success from what I have seen and Monti VMS prospects, was semi- with the coronavirus and other things
in the last period. I think there is a whole completed at the time of print. happening around the globe, but I feel
range of different things that you need An exploration budget of $3.3 million that is a bit of a storm in a tea cup and
lined up to make sure that it works, but I has been set for Perrinvale this year fol- will wash out in the next few weeks or
think pretty importantly being in the right lowed by a spend of $3.5 million sched- so,” Holland said.
commodity and having the right structure uled for 2021. “It feels to me that the overall sup-
“Privately we got all the work done be-
“ The [resources] sector itself has been reaction, which I think will happen some
and team, plus having a strategic share- fore we listed, so we did all the site prep ply and demand for copper is definitely
moving forward and a lot of people have
been waiting a long time to see a price
time in the foreseeable future and our
looking ready for a run and a couple
company will be positioned to capture
that.”
of juniors have done quite well in the space.

– Mark Andrews

aUSTRaLIa’S PaYDIRT MaRCH 2020 Page 13