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RNS Number : 8950G
Metal Tiger PLC
09 March 2015
METAL TIGER PLC
9 March 2015
Metal Tiger plc
("Metal Tiger" or the "Company")
Strategic and operational update by Eurasia Mining
Metal Tiger (LON:MTR) is pleased to note the announcement today
by Eurasia Mining plc ("Eurasia") (LON:EUA) which has provided a
strategic and operational update for their shareholders. An extract
of the Eurasia announcement is provided below. The full text can be
found at:
http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/12273679.html
Cameron Parry, CEO of Metal Tiger, commented:"We note the RNS
today from Eurasia Mining Plc, text below, highlighting progress
across the business. Metal Tiger looks forward to the new project
opportunities that may emerge from the collaboration agreement we
have with Eurasia."
Extract of Eurasia Mining Announcement:
"Strategic and Operational update
Eurasia, the platinum explorer and resource development company
operating in Russia, is pleased to provide a strategic and
operational update for shareholders in respect of the Company's
activities.
Highlights:
- West Kytlim Platinum Mining Licence key verbal approvals
received and prudent operational planning well advanced;
- Approaches to acquire, or acquire an interest in, the
Company's Monchetundra Licence;
- Work to identify new opportunities well advanced;
- Company proposing to form two new operational divisions,
namely Eurasia Exploration and Eurasia Development &
Production.
Christian Schaffalitzky, CEO of Eurasia Mining commented "We are
pleased to inform and update shareholders on strategic and
operational changes to ensure the market is fully aware of the
activities being undertaken by the Eurasia team.
We believe significant progress has been achieved recently in
respect of existing assets and in the search, evaluation and
negotiation of new interests. The proposed strategic restructuring
of the business takes account of recent developments and positions
the business for the opportunities available to the Company.
For the sake of clarity I would confirm that the content of this
news announcement is based on the Director's best knowledge or
belief as to the matters referenced therein. Mineral exploration
and development is inherently a risk based enterprise and not all
events or progress anticipated will transpire and investors should
be clear in this regard when considering the information below.
The Board of Eurasia Mining are confident in the measures being
taken by the Company to secure value from existing assets and build
additional opportunities to further enhance our Investment
Proposition."
West Kytlim:
West Kytlim is a PGM exploration and development interest in the
Urals, Russia in which Eurasia has a 75% holding. The Company has
submitted and is progressing through a Mining Licence application
to allow the Company to undertake alluvial Platinum mining and
production from West Kytlim.
As announced to the market on 25 February, Eurasia has now
received verbal confirmation of the Department of Defence and
Federal Security Service approval of the Company's Mining Licence
application. We believe these are key steps and now lead us into
the final application stages with Rosnedra now compiling the Mining
Licence terms and conditions for review and feedback from the
Ministry of Economic Development. Subject to satisfactory
completion of this stage our application will then be forwarded to
the President's office for the final stage of approval.
We are respectful of due process and the requirement of the
local ministries to properly review and consider our application.
However we are undertaking prudent work to review, plan and budget
for the measures required post Mining Licence to ensure production
operations can, weather permitting, be commenced as soon as
possible.
We have completed detailed operational plans for West Kytlim
development, against which debt financing negotiations can be
undertaken. Those operational plans are subject to the specifics of
the final Mining Licence, but having a planning structure in place
enables us to amend and adapt provisional plans more easily than
awaiting the Mining Licence and preparing plans thereafter which
could lead to operational delays.
The Eurasia team includes management with a close knowledge of
mining finance in-country, and we have confirmed the general
availability of debt based mine finance for licenced alluvial
operations such as West Kytlim, particularly given the moderate
capital expenditure requirements to commence operations. We are now
working to finalise the specific sources of prospective finance for
our West Kytlim project as a prudent measure in readiness for
commencement of operations.
We believe the advance planning we have undertaken will enable
the Company to act swiftly on receipt of the Mining Licence, which
is in the interests of the Company and importantly, the local
authorities in-country who are keen to see commercial operations
flourish and the local employees and contractors who will benefit
financially from the extensive work opportunities that will be
available.
The practicalities of Mining Licence confirmation and refinement
of our operational plans at West Kytlim will enable the generation
of financial data in respect of estimated revenues and project
profitability. This information will enable us to update the market
on the financial specifics pertaining to West Kytlim and
demonstrate the benefit of all the project preparatory work we have
undertaken over a number of years.
As part of this work, we are also preparing to commission an
independent assessment and valuation of the West Kytlim project.
This report will provide our shareholders and the market a detailed
understanding of the project, based on the operational framework
provided by the Mining Licence. It will also assist third parties
in confirming the Company's technical and financial work completed
in preparing West Kytlim for platinum mining.
Overall Eurasia Mining is grateful to our in-country advisors
and regulatory authorities for the assistance provided and the
recent progression of our Mining Licence application. We are
working hard to encourage continuing momentum. Investors can be
assured that the hard work of planning and preparation has also
been undertaken, so we are operationally ready when the approval to
proceed to mining is received.
Monchetundra:
The Company holds an 80% interest in the Monchetundra PGM
project on the Kola Peninsula in Russia. The exploration licence in
respect of this property was renewed in late 2013 with a 3 year
term expiring in December 2016.
Significant exploration work has been undertaken on the property
to date, much of this under Joint Venture with Anglo Platinum with
Anglo funding operational activities. That joint venture formally
ended in 2014 when Anglo took a strategic decision to focus on
their South African PGM operations. As a result Eurasia Mining was
able to re-acquire Anglo's interest and retain for the company and
shareholders the benefit of the considerable multi-year exploration
expenditure on the property.
The work undertaken to date has delivered a considerable
quantity of data and extensive PGM and base metal mineralisation
has been identified most notably in the West Nittis and Loipishnyun
areas of the licence.
A detailed work programme for future activities at Monchetundra
has been prepared. However since then Eurasia Mining has received
two approaches from third parties who have expressed an interest in
acquiring outright, or acquiring an interest in, the Monchetundra
licence.
The Company has therefore engaged in commercial negotiations
with both parties with a view to considering and negotiating a
suitable transaction that is in the interests of all parties, but
specifically Eurasia shareholders. This process has recently
included site visits to the project and from which positive
feedback has been received.
Whilst there can be no certainty that any transaction can be
concluded in an acceptable manner, the company is working with the
relevant third parties in an attempt to reach an acceptable
conclusion, if possible.
New Opportunities:
The Company has been working for some time on the identification
and consideration of new project opportunities. Following the
collaboration with Metal Tiger plc announced on 29 December 2014
the review of new project opportunities has accelerated.
At present the Company has numerous project opportunities under
review, but is focusing its attention on certain opportunities with
near term production possibilities. This focus is in line with the
Company's desire to become self-financing through the inclusion of
production assets sitting alongside and financing exploration
opportunities.
There is no guarantee that these transactions will progress, but
if they do further announcements will be made at that time. In all
cases we are ensuring that financing and managerial requirements
for any new interests are well within our means, and this is
assisted in part should Metal Tiger plc agree to participate with
Eurasia Mining on equal terms, as is proposed within the
collaboration announced on 29 December 2014.
New Business Structure:
Following a review of the existing company and subject to
successful progress at West Kytlim and with regard to new
acquisition opportunities Eurasia Mining will create two distinct
operational areas namely, exploration interests and development to
production and/or already producing assets.
Reflecting the need to structure the Company in an efficient and
effective manner it is the Board's intention to create two new
internal divisions named Eurasia Exploration and Eurasia
Development and Production, in which to allocate and manage these
exploration and production operations.
We will advise shareholders if and when this structural business
change is implemented."
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
(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
END
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