TIDMMTR
RNS Number : 9401Z
Metal Tiger PLC
23 September 2015
METAL TIGER PLC
23 September 2015
Metal Tiger plc
("Metal Tiger" or the "Company")
Uranium Joint Venture Update
Metal Tiger (LON:MTR), the natural resources investing company
is pleased to provide an update with regard to the Company's
uranium joint venture ("JV") with Kibo Mining (LON:KIBO) covering
the Pinewood Uranium Project ("Pinewood") in Tanzania.
Highlights:
-- JV partners Metal Tiger and Kibo Mining recognise a positive
shift in Uranium sector dynamics reflecting the anticipated forward
demand/supply profile of the commodity.
-- The Pinewood JV has now commenced and will initially focus on
updating a 2009 study and report on regional prospectivity and
exploration potential in Tanzania, including the Pinewood Uranium
licence portfolio.
-- Further consideration now being given to supplement the
existing joint venture with additional Uranium assets under JV
partner review.
-- Strategic aim of the JV is to build a low cost but highly
strategic Uranium portfolio providing JV partner shareholders with
considerable potential upside from an anticipated recovery in the
Uranium sector.
Cameron Parry CEO of Metal Tiger commented: "We are pleased to
announce the commencement of Uranium focused activities. It is also
pleasing to report the JV partners strategic decision to work
together to consider the acquisition of additional Uranium
interests broadening and deepening both companies Uranium sector
exposure.
We believe that a diversified resource asset portfolio should
include exposure to highly attractive Uranium interests in
readiness for a recovery in the sector.
We will provide a further update to market in respect of the
Uranium study update in due course, and we will further report to
market in respect of any Uranium asset transactions and related
matters as and when material events occur."
Tanzanian Uranium Project Study
In August 2009 a study and report covering Tanzanian uranium
potential was prepared by Mzuri Resources to assist with the
identification of attractive uranium prospective licences for
acquisition and development in-country. This report provided
coverage of the following elements:
- Mineralisation models for uranium deposits;
- Existing uranium focused operational activities in Tanzania;
- Assessment of regional uranium prospectivity concentrating on
south-west and central uranium regions;
- Specific assessment of identified uranium targets.
The JV has decided to commence its work together by undertaking
an update of the above study report and ensuring operational
decision making with regard to the Pinewood project, and any
potential new acquisitions, is undertaken with a full understanding
of the current status of the Tanzanian Uranium environment.
The updated study report is expected to be completed and
delivered during October 2015 and the results of this work will be
announced to market as appropriate. In parallel with this work the
JV continues to seek uranium acquisition opportunities within
Tanzania and other jurisdictions.
Uranium Prospective Joint Venture Areas - Pinewood Portfolio
A wholly owned subsidiary of Kibo Uranium Limited (50% KIBO /
50% MTR), owns a portfolio of Uranium prospective licences for
exploration in Tanzania (collectively the "Pinewood
Portfolio").
The Pinewood Portfolio of exploration licences is located in the
southern western corner of Tanzania, between the regional capitals
of Iranga, Mbeya and Songea. The portfolio consists of 43 licences,
offers, applications and tenders with a combined surface area of
approximately 9,033 square kilometres.
Terms of the initial Uranium Project Joint Venture
Following completion of due diligence in January 2015, the
parties entered into a JV agreement on the following terms as
outlined in the MOU announced to market on 21 November 2014:
-- Metal Tiger has acquired 50% of Kibo Uranium Limited ("KB
Uranium"), previously a 100% wholly owned subsidiary of Kibo Mining
plc, that owns the Pinewood Portfolio for a consideration of
GBP1
-- Metal Tiger is to meet the expenses in relation to the
licence renewal fees and other maintenance costs of the Pinewood
Portfolio for a minimum of 1 year (estimated to be approximately
$100,000) and up to a maximum of 3 years
-- Metal Tiger is to expend the first US$800,000 under the JV in
expenses and exploration relating to the Pinewood Portfolio, at
which point costs moving forward are shared 50/50 between the
parties
-- At any time following the first anniversary of the JV, on not
less than 90 days notice to Kibo, Metal Tiger may elect to cease
sole funding of the JV expenditure
-- Should Metal Tiger elect to not continue with the JV after
the minimum term of one year, or fail to expend US$100,000 by the
first anniversary of the JV, or should Metal Tiger fail to expend
the full expenditure by the third anniversary of the JV then:
o if less than US$300,000 of the agreed expenditure, the 50%
interest in the JV owned by Metal Tiger shall revert back to KB
Uranium subject to them exercising a claw-back option;
o if greater than $300,000 of agreed expenditure, KB Uranium
shall have the right to exercise the claw-back option in respect of
Metal Tiger's interest in KB Uranium however Metal Tiger shall
retain a 10% free carry in the Pinewood Portfolio.
For further information on the Company, visit:
www.metaltigerplc.com:
Metal Tiger Plc
Cameron Parry (CEO) Tel: +44 (0)207 099
0738
Paul Johnson (Executive Director) Tel: +44 (0)7766 465
617
Spark Advisory Partners Limited
(Nominated Adviser) Tel: +44 (0) 2033
Sean Wyndham-Quin 683 555
Neil Baldwin
SI Capital (Sole Broker) Tel: +44 (0) 1483
Nick Emerson 413 500
Andy Thacker
Notes to Editors:
Metal Tiger Plc is a natural resources focused investing company
quoted on the London Stock Exchange AIM Market ("AIM") with the
trading code MTR and two investment divisions, Direct Equities and
Direct Projects.
The Direct Equities division invests in quoted natural resource
explorers and developers, with a combination of shares and warrants
providing a potential non-debt financing instrument and enhanced
return potential.
The Direct Projects division invests in operational mineral
exploration projects with current investments in Spanish Gold &
Tungsten, Thai Gold, Copper & Antimony, and Tanzanian Gold and
Uranium. The Direct Projects investment division also has working
collaborations to identify new investment opportunities in Russia
(platinum focus) and Turkey (gold focus), in association with
experienced in-country partners.
Metal Tiger's target is to deliver a high return for
shareholders by investing in significantly undervalued and/or high
potential opportunities in the mineral exploration and development
sector timed to coincide where possible, with a cyclical recovery
in the exploration and mining markets.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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