Cobre holds the volcanogenic massive sulphide (VMS) Perrinvale Copper project in central Western Australia, where an airborne geophysical survey is imminent.
Metal Tiger, subject to conditions, has also agreed to subscribe for more shares under Cobre's planned initial public offering (IPO), investing a further A$2 million to take a total stake of 19.99%.
"We are delighted to have completed this investment into Cobre and to see rapid progress being achieved at the world-class Perrinvale copper project," said Michael McNeilly, the chief executive of Metal Tiger on Monday.
"The helicopter-borne electromagnetic geophysical survey programme should help to accelerate the identification of additional VMS style high-grade copper zinc gold mineralisation within this highly prospective area. We see significant follow-on potential at Perrinvale and look forward to seeing this being realised in the months ahead.”
A 1,000m drilling programme at Perrinvale earlier this summer hit high grade VMS base metal and gold mineralisation at shallow depth at the Schwabe prospect, with highlight results including 5 metres (m) at 9.8% copper, 3.2 grams per ton (g/t) gold, 34.0g/t silver and 3.1% zinc from 50 metres.
The airborne survey will cover around 114 sq km covering a 22km strike length of the Panhandle Greenstone Belt, where at least eight potential base metal targets have been identified. Targets include the Schwabe prospect.
In this initial investment for 15%, Metal Tiger was issued with 6.6 million new Cobre shares at A$0.0758 each and on completion of the IPO, Metal Tiger will be able to appoint a nominee director to the board of the Cobre.
A condition of the issue of the IPO shares is that Metal Tiger will hold 19.99% in the Cobre IPO entity.