My rationale to invest Cobre Resources From the prospectus and...

My rationale to invest Cobre Resources

From the prospectus and other sources available in public

http://www.cobre.com.au/wp-content/uploads/2019/12/Cobre_Prospectus_06Dec19.pdf

https://*********.com.au/cobre-list-on-asx-after-heavily-oversubscribed-ipo/

https://www.copyright link/street-talk/copper-play-cobre-readies-blue-sky-ipo-pitch-20191008-p52ykz

https://www.*.co.uk/companies/news/902220/metal-tiger-closes-cobre-deal-902220.html


Total Shares on issue at IPO : 96,810,688
Market Capitalisation at IPO : $19.36M
Existing cash reserves :$530k
Cash raised in the IPO : $10.0M
Enterprise Value : $8.83M

Perrinvale Project :

The Company’s flagship asset, the 80% owned Perrinvale project, 290 km NW of Kalgoorlie which covers 381 km2 across 9 tenements and 4 key prospects (Schwabe, Ponchiera, Zinco Lago and Monti).
A maiden RC drilling program completed in June 2019 at the Schwabe prospect intersected high-grade volcanogenic massive sulphide (“VMS”) base metal & gold mineralisation at shallow depth.

This included drilling 5m @ 9.75% Cu, 3.2 g/t Au, 34 g/t Ag, 3.1% Zn
Cobre’s short-term aim is to drill test priority targets identified at Perrinvale which are prospective for VMS mineralization following a recent airborne EM survey.
Drilling to commence at Perrinvale shortly after IPO.Well established infrastructure provides year-round access.

In Cobre’s prospectus, it said more than 60% of this two-year budget is allocated to RC and diamond core drilling to test targets including the conductor on the north side of the Ponchiera prospect and to confirm historic results at the Zinco Lago prospect.

Sandiman Project :

Cobre has executed an Earn In and Joint Venture Agreement with private company GTTS Generations Pty Ltd to earn up to an 80% interest in the Sandiman Project.

Sandiman is located east of Carnarvon on EL 09/2316 and is considered a prospective sediment hosted base-metals project. Independence Group (ASX: IGO) Lyons River Project surrounds the Sandiman Project.The primary objective of the exploration program will be to confirm the conceptual potential via a systematic exploration approach utilising detailed mapping, geological/mineralogical studies, ground geophysics and in the second year, initial drilling.

Capital structure lead manager :

Ashanti capital is the lead manager of this IPO. Ashanti was co lead manager of ADT IPO in 2018 and it was one of the best resources IPO of recent times. It was 20c IPO and current share price is $1.90 . Ashanti got a reputation to bring some amazing projects to market and their registers are usually pretty tight.

From existing (Before IPO Raise) 47 mil shares only 7 mil shares are with non related party security holders , meaning other 40 mil shares should be escrowed for 12 to 24 months . Also 7 mil shares with non ralated party holders should be escrowed as per the ASX escrow rules . More details will be out before ASX listing .So not many existing shares will be non escrowed and it suggests a very tight capital structure.

Existing Cobre strategic investor, Metal Tiger Plc, is subscribing for a minimum of A$2.0m and up to A$2.4m in the IPO, to take MTRs holding to no more than 19.99% post IPO

Cobre also have Experienced directors and technical team.

Conclusion :

Cobre got some drill ready assets and Drilling will start very soon after IPO listing. Cobre also got some good historical hits.Grades are amazing and if initial drilling will successfully find the main system and better strike ,It can become the next BIG winner in mining sector. Drillng will do the talking going forward. IPO was heavily over subscribed and it was extremely hard to get good size IPO allocations which means there will be some unmet demand post listing.It should list between 25c to 30c and if good drillng results in coming months, It should go to 60c to 80c in near future.

I have a little allocation in this IPO.

GLTAH

ALL IMO

ALWAYS DYOR