Metal Tiger PLC Investment in Ariana Resources and Collaboration (1418E)

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RNS Number : 1418E

Metal Tiger PLC

05 February 2015

METAL TIGER PLC

5 February 2015

RNS Title - Investment in Ariana Resources and Collaboration

Metal Tiger plc

("Metal Tiger" or the "Company")

Investment Agreement and Collaboration

Metal Tiger becomes a shareholder in Ariana Resources Plc with up to GBP150,000 equity investment

In line with the Company's investing policy and strategic update announced on 27 January 2015, Metal Tiger Plc (LON: MTR), the AIM listed natural resources investing company, is pleased to announce that it has entered into an investment agreement with Ariana Resources plc (LON:AAU) ("Ariana") that includes a direct equity investment of up to GBP150,000 by Metal Tiger for shares with attaching warrants in Ariana.

Metal Tiger's CEO, Cameron Parry, commented: "Metal Tiger is pleased to enter into this strategic investment agreement, which enables the Company to invest directly in Ariana Resources at a significant point in their business development pathway.

With Metal Tiger's commitment to invest up to GBP150,000, Ariana have a strengthened cash position and the financial resources to manage normal plc cost commitments, thus freeing the team to concentrate on final permitting, mine construction and the planned first gold pour from Kiziltepe, scheduled for next year.

Through the shares acquired and premium-priced warrants, the Board believes there is considerable upside for Metal Tiger should Ariana continue to deliver and move the company into gold producer status.

Metal Tiger is also pleased to announce a collaboration with Ariana Resources with regard to exciting new resource opportunities in Turkey and notably in respect of the opportunities that may emerge from the impending fresh licence auctions in-country."

Ariana Resources plc reported net assets of GBP6,437,000 as at 31 December 2013 and a loss for the year ended 31 December 2013 of GBP1,334,000.

Investment Agreement:

The key terms of the investment agreement are as follows:

-- Metal Tiger has made an initial investment of GBP75,000 for 8,333,333 Ariana new ordinary shares at a price of 0.9p per share. This amount has now been paid to Ariana. Metal Tiger will also receive 8,333,333 warrants to subscribe for new ordinary shares in Ariana, within a three-year term at an exercise price of 1.8p per share;

-- Metal Tiger will invest a further GBP75,000 in 8,333,333 Ariana shares at a price of 0.9p per share within 20 business days of Ariana confirming via an AIM announcement, receipt of the forestry permits, as previously advised to the market as a pre-requisite for process plant construction and gold production. The second instalment may be accelerated and paid earlier, at Metal Tiger's option. The second instalment commitment shall only remain available to Ariana provided the forestry permits are received by 30 June 2015. On payment of the second instalment Metal Tiger will receive an additional 8,333,333 warrants to subscribe for new ordinary shares in Ariana, with a three-year term at an exercise price of 1.8p per share;

-- In the event that Ariana confirms via an AIM announcement that they have sold their interest in the Salinbas/Ardala project for cash or share consideration in excess of $15million, the price of any un-exercised warrants will increase by 50% to an exercise price of 2.7p per share.

Collaboration:

Metal Tiger and Ariana have agreed to collaborate to identify and consider new resource investment opportunities in Turkey where both parties may be able participate. Most notably both companies are keen to consider the additional opportunities that may arise in respect of fresh licence auctions due to take place in the next two months in Turkey. Further information will be provided to the market in respect of this collaboration in due course.

For further information on the Company, visit: www.metaltigerplc.com:

 
 Cameron Parry                                 Tel: +44 (0)207 
  (CEO)                                         099 0738 
 Paul Johnson                                  Tel: +44 (0)7766 
  (Non-Executive                                465 617 
  Director) 
 Sean Wyndham-Quin   Spark Advisory Partners   Tel: +44 (0) 2033 
  Neil Baldwin        Limited                   683 555 
                      (Nominated Adviser) 
 
 Nick Emerson        SI Capital Limited        Tel: +44 (0) 1483 
  Andy Thacker        (Sole Broker)             413 500

This information is provided by RNS

The company news service from the London Stock Exchange

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