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
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.
SP Angel research note on commodities and miners, featuring: Australian Vanadium (AVL AU) – MOU for VSUN grant and instillation of a new Solar and VRFB battery solution in Pilbara Chaarat Gold* (CGH LN) – Interims: acquisition of producing Kapan and de-risking of Tulkubash development project Rambler Metals & Mining* (RMM LN) – General meeting Serabi Gold (SRB LN) – Presentation highlights pathway to 100,000oz gold production
Morrison (Wm) Supermarkets is to extend its online partnership with Amazon as it reported disappointing sales compared with those in last year’s hot summer, London Stock Exchange Group the target of a £32 billion bid from its Hong Kong rival, is considering moving its headquarters out of the Square Mile for the first time in its history
British Airways has started emailing passengers to cancel flights two weeks ahead of another strike by pilots. The industrial action on 27 September is expected to affect hundreds of flights and tens of thousands of passengers.
SP Angel research note on commodities and miners, featuring: Arc Minerals* (ARCM LN) STRONG BUY – More high grade copper discovered at Cheyeza in Zambia (inc. 10.5m grading 2.79% copper) Cora Gold* (CORA LN) – Interims Botswana Diamonds (BOD LN)* – Environmental authorisation at Marsfontein Strongbow Exploration* (SBW CN) – Tungsten royalty rights