Cobre Limited: District Scale Cu/Ni Investment

Sydney, Australia - Cobre Ltd. (ASX:CBE) is pleased to announce the signing of an Investment Agreement (Agreement) with Armada Exploration Limited (Armada), a Mauritian holding company, that owns 100% of Armada Exploration (Gabon) SARL, which is the owner of two exploration licences prospective for magmatic Ni-Cu sulphide situated in Gabon (figure 1*). Covering a total area of nearly 3,000km2, the licence holding presents a frontier district-scale exploration opportunity.

Cobre has subscribed for 5,000,000 new ordinary shares at a price of US$0.15 in Armada for a total consideration of US$750,000, via a promissory note, with US$350,000 to be invested up-front and the balance of US$400,000 to be paid in monthly instalments of US$80,000 over the next five months.

Cobre will also receive 3,333,333 options exercisable at US$0.225 with a 3 year expiry term to be issued within 5 days from the date of completion of the Agreement. In the event of a public listing, Cobre will need to settle any outstanding amounts under the promissory note in full at the time of the public listing. Following completion, Cobre will own 18.5% of the issued ordinary share capital of Armada. Cobre will be given the right to appoint a director to the Board of Armada (or equivalent top co) in the event of a restructuring as part of a listing.

Highlights:

- US$750,000 invested for 18.5% of Armada alongside RCF Opportunities Fund L.P. (RCF) and AIM-listed investor in natural resource opportunities, Metal Tiger plc.

- Armada will have access to US$2.25m in PRE-IPO capital.

- The Armada team were key members of the team that were awarded the 2015 PDAC Thayer Lindsley Award for an International Discovery, for the discovery of the world-class Kamoa deposit by Ivanhoe Mines.

- >US$10m already spent targeting an initial area of >16,000km2, Armada is preparing to drill a multi-target project opportunity for magmatic Ni-Cu sulphides in the Nyanga area of southern Gabon.

- Compelling geology at the district scale: the location along the Congo Craton margin with a complex regional-scale fault network has permitted extensive volumes of mafic melt to intrude into sulphide-bearing country rocks ("basement"), assisting the potential formation of magmatic Ni-Cu sulphide deposits.

- Using a combination of regional soil surveys and mapping, existing airborne magnetic, radiometric and electromagnetic (versatile time domain electro-magnetic or "VTEM") geophysical survey data, Armada has delineated an initial 18 named targets, situated along this distinct basement corridor.

- Copper and nickel sulphide occurrences have been mapped at surface at three top ranked targets (Libonga North, Matchiti Central and Doumvou).

- Results from detailed whole rock geochemical studies have proven peridotite to gabbro fractionation suites at the Libonga North and Matchiti Central targets.

- The 20km-long Libonga-Matchiti Trend (LMT) is drill ready.

- A new high resolution 707-line km time domain electromagnetic (HTDEM) survey is in progress, using New Resolution Geophysics (NRG(TM)) Xcite(TM) airborne electromagnetic system at the Libonga North, Matchiti Central and Doumvou targets.

- A drilling programme of 3,000m is planned to commence in the second half of 2021.

- An IPO is targeted for 2021 coinciding with drill rig mobilisation.

- Experienced leadership team with a serially successful track record of involvement in major discoveries as well as extensive operational experience in Central and Southern Africa.

Martin Holland, Cobre's Executive Chairman and Managing Director, commenting in Cobre's investment said: "Myself and the Cobre Board see this early investment into Armada as a great opportunity to expand the Company's reach in the copper exploration space beyond our Western Australian and Botswana projects. With examples such as Noril'sk in Russia and Voisey's Bay in Canada, along with Nova-Bollinger and Nebo-Babel deposits in Western Australia, Magmatic Nickel-Copper sulphide deposits represent some of the world's most significant sources of base metals. Given Armada's experienced leadership team, who have a successful track record of involvement in major discoveries like the worldclass Kamoa deposit by Ivanhoe Mines, and proven operational experience in Central and Southern Africa, we are confident we have the right partners for success and look forward to the journey ahead".

Background on Armada

Armada was established to define new belt-scale discovery opportunities for key commodities (principally nickel and copper) in under-explored regions of Africa. With >US$10m spent targeting an area of >16,000km2, Armada is preparing to drill a multi-target project opportunity for magmatic Ni-Cu sulphides in the Nyanga area, southern Gabon. Armada is supported by a Board and Africa-based technical team both with a track record of successful African projects. Key members of the Armada targeting team were awarded the 2015 PDAC Thayer Lindsley Award for an International Mineral Discovery (as members of the Kamoa/DRC discovery team with Ivanhoe Mines).

For the year ended 31 December 2020, Armada recorded a net loss of US$89,369 and, as at 31 December 2020, reported net assets of US$9,288,843.

Technical Summary

Armada presents a first-mover advantage in the exploration for magmatic nickel-copper sulphide deposits in Gabon. Through its two exploration licences (G5-150 and G5-555 - see Table 1 below) Armada holds rights to 2,991 km2 of ground associated with the Congo Craton margin (figure 1). The basement within the licence areas have been intruded by a suite of mafic and ultramafic intrusions which represent the primary target for magmatic Ni-Cu mineralisation in this area (figure 2*).

The craton margin setting of the Armada project area is considered to represent a region of relatively thin lithosphere which became the focus of strain during successive regional tectonic events resulting in the continued reactivation of potential crustal-scale fault networks which facilitated the emplacement of, potentially metal-sulphide rich, magmatic melts into the crust.

Using a combination of existing airborne magnetic, radiometric and electromagnetic geophysical survey data interpretations and regional soil surveys, Armada has delineated an initial 18 named targets situated within this distinct basement corridor (figure 3*).

The three highest ranking targets coincide with two parallel structural trends. The Libonga North and Matchiti Central targets sit along a 20km long north to northwest striking feature defined as the Libonga-Matchiti Trend (LMT). The LMT has been delineated from magnetic and radiometric datasets and is characterised by a series of mafic and ultramafic intrusive bodies.

The top three ranked targets, Libonga North and Matchiti Central (LMT) and Doumvou were subject to field mapping, soil and whole-rock geochemical sampling and ground gravity geophysical surveys.

The ground gravity surveys outlined gravity anomalies interpreted as dense bodies, whilst detailed Cr, Ni and Cu soil geochemistry further defined and confirmed areas underlain by mafic-ultramafic lithologies.

The Libonga North target sits at the northern end of the LMT and is coincident with a gravity anomaly (a dense body), a VTEM conductor, and regional Ni-Cu (Cr) anomalism identified from geochemical soil sampling. The Libonga North target has been investigated by detailed field mapping with visible chalcopyrite occurrences identified in a number of field localities within the confines of the intrusion boundaries. Rock samples collected during the mapping programs were submitted for detailed whole rock geochemical assessment with results, interpreted independently, suggesting peridotite to gabbro fractionation suites, with the conclusion that the intrusions resulted from potentially multiple pulses of magma, bearing the potential for development of a mineralising system.

Preliminary geological modelling of the Libonga intrusion points to a sill-like body which plunges gently to the northwest. Initially, two high priority drill holes are planned to intersect the highest conductors interpreted from the existing VTEM data where there is spatial overlap with dense bodies mapped from the gravity data.

Plate modelling using Maxwell software and layered earth inversions of the NRG(TM) Xcite(TM) airborne electromagnetic data will be used to plan the drilling programmes.

Planned Follow-up Work Programmes

Detailed Geophysics and Drilling Programme

- A 707-line km Xcite(TM) helicopter-borne time domain electromagnetic 'HTDEM' survey at 200m line spacing along the LMT and the Doumvou target is due for completion in March 2021. Layered earth inversions using Geoscience Australia code, inversions of magnetic data using Fullagar's VPmg code and plate modelling using Maxwell software is planned.

- A minimum of 3,000m of drilling is planned across three targets, with holes planned to a depth of approximately 350m to the interpreted base of the intrusion. The drilling programme will be supported by helicopter.

o Priority 1 Drill Target: Libonga North. NRG(TM) Xcite(TM) airborne electromagnetic survey and data modelling with a minimum of 1,000m of core drilling to test for potential sulphide trap sites.

o Priority 2 Drill Target: Matchiti Central. NRG(TM) Xcite(TM) airborne electromagnetic survey and data modelling with a minimum of 1,000m of core drilling to test the denser and more conductive units interpreted from the data modelling.

o Priority 3 Drill Target: Doumvou Target. NRG(TM) Xcite(TM) airborne electromagnetic survey and data modelling with a minimum of 1,000m of core drilling to test the potential prospectivity of an interpreted northeast- southwest trending fault suture.

Regional Programme

- Detailed mapping and rock grab sampling.

- The NRG(TM) Xcite(TM) airborne electromagnetic survey may be extended out on a regional belt scale (dependant on drilling results).

- Priority targets identified by the regional programme will be escalated for follow-on investigation.

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/6NBWN652

About Cobre Limited:

Cobre Ltd. (ASX:CBE) is a copper and base-metals explorer with projects in Western Australia and Botswana. The Company recently discovered a new high-grade VMS deposit enriched in Copper, Gold, Zinc and Silver in Western Australia, and is currently exploring approximately 8,100 km2 of tenements within the Kalahari Copper Belt (KCB) in Botswana.

Source:
Cobre Ltd.

Contact:

Cobre Ltd. Martin Holland E: info@cobre.com.au WWW: www.cobre.com.au