Cobra Resources IPO Insights
COBRA RESOURCES
COMPANY DETAILS
Ticker:
Market: Main
Money Raised: £511k
List date: 15 Nov 2018
Cobra Resources was formed to make acquisitions in the natural resources sector. The company believes there is an excellent opportunity to take advantage of the next “up-cycle” in the sector by identifying and acquiring advanced but undervalued exploration projects.
Its selection criteria includes the availability of mining projects at attractive valuations, opportunities to unlock embedded value and the prospect of adding significant value. It will be looking at projects with a strong management team with a proven track record.
Australia and Africa are the key target geographies, though it is not limited to either. The commodities it is initially focused on are base and precious metals, with a particular interest in copper, gold and cobalt, while it will also look at opportunities in barite.
As part of the listing, the company raised £523,500 before expenses through a share placing. It has also issued warrants that if they were all exercised would raise a further £1.3 million.
Directors see an opportunity to take advantage of current asset and project valuations at this stage of the mining cycle and believe there are significant opportunities to invest in projects where existing management teams have restricted access to capital.
Cobra Resources will also look at projects which may require not only cash but technical and financial expertise and will invest directly or through farm-ins.
The team is led by CEO Rolf Gerritsen, an entrepreneurial executive with 30 years’ international experience in natural resources. The non-executive directors are Ken Watson, who has decades of experience in mining in Australia, and Greg Hancock with 25 years’ experience in the capital markets of Australia and UK.
Speaking about the company’s listing, Rolf Gerritsen said: “The funds raised from the IPO will be used to evaluate any potential acquisition target with a focus in base and precious metals, where the directors feel most of the opportunities lie and where Cobra Resources can add value.
“The last decade has seen a significant lack of investment in development projects in natural resources. We see this as an opportunity.
“Cobra Resources has been formed to take advantage of certain attractive supply and demand dynamics going on in the natural resources environment by identifying and investing in one or two quality advanced but undervalued projects, which the board believes have the potential to create shareholder value.”
“The funds raised from the IPO will be used to evaluate any potential acquisition target with a focus in base and precious metals, where the directors feel most of the opportunities lie and where Cobra Resources can add value." Rolf Gerritsen - CEO
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