Metal Tiger portfolio firm Cobre begins drilling at Perrinvale VHMS project
The natural resources investor said a diamond drill rig was now onsite while a reverse circulation drill rig is due to be mobilised to the site this week.
The programme includes 6,000 metres of reverse circulation and diamond drilling, with the dual aim of extending current mineralisation at the project as well as drill testing new targets.
Metallurgical test work will also commence on an ore sample from the Schwabe prospect.
“We are very excited by the start of this latest drilling campaign by Cobre, which follows on from the significant work which has already been done to demonstrate the potential at Perrinvale and has twin objectives of extending confirmed VHMS mineralisation beyond Schwabe prospect, while also stepping out to test new targets at Perrinvale, in order to explore the broader potential of the licence”, said Metal Tiger chief executive Michael McNeilly in a statement.
“We look forward to receiving early visual results before assays and analysis are performed by Cobre’s specialised and experienced VHMS technical team, which are expected to further refine the focus and strategy of the second half of the budgeted drill programme”, he added.
In a separate announcement late on Tuesday afternoon, Metal Tiger said it had completed a third financing arrangement with its lender pursuant to an umbrella facility.
The company said it had entered a stock lending arrangement under which the lender will be able to borrow up to 289,109 shares in Australian explorer Sandfire Resources (ASX:SFR), while the company also has the right to sell 289,109 Sandfire shares to the lender in three years at 80% of the A$5.05 reference price.
The lender also has the right to buy 289,109 Sandfire shares in three years at a premium of 145% to the reference price.
In return, Metal Tiger said it has borrowed A$1.17mln from the lender.
The firm said it will use the proceeds to fund potential investment opportunities, adding that it can also agree with the lender to increase the size of the financing arrangement at later date.
In total, Metal Tiger said it has borrowed around A$10.4mln under the umbrella facility.
“The board has taken the proactive and prudent step of increasing the company’s cash position in order to have additional firepower and flexibility going into [the second quarter] earnings reporting season and is actively analysing a number of potential investment opportunities, including potentially a basket of put options that could help the company through what may prove to be a difficult period in the financial markets”, McNeilly said.
Shares in Metal Tiger surged 9.6% to 2.3p in mid-morning trading on Wednesday.
–Adds drilling programme details and updates share price–