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RNS Number : 1160I
Metal Tiger PLC
23 March 2015
Metal Tiger Plc
("Metal Tiger" or the "Company")
Business Milestone & Strategic Plan Update
Metal Tiger (LON: MTR), the natural resources investing company
is pleased to announce the achievement of a significant business
milestone - the implementation of both investment divisions and the
Company reaching a position to self-finance its activities.
Cameron Parry, Metal Tiger plc CEO said "Since the launch of
Metal Tiger in June 2014 the Company has established a diverse and
robust investing methodology and has become one of the most active
natural resources investing companies on the London Stock Exchange
AIM Market. Metal Tiger's Direct Equities investment division has
already delivered a substantial financial return to the Company,
fast-tracking the Company's current ability to self-finance its
activities. Metal Tiger's Direct Projects investment division now
has exposure to predominantly Gold, but also Tungsten, Copper,
Antinomy and Uranium with active operations in Spain, Thailand and
Tanzania plus working collaborations for additional Gold, Copper
and Platinum-focused opportunities in Russia and Turkey.
This is a significant milestone in the Company's short history
and sees us move into the next phase of our plans. The Board of
Metal Tiger would like to thank our shareholders, joint venture
partners and all other stakeholders who have supported the company
in the implementation of our strategic plan to date. We continue to
work hard to innovate, invest and create value for
shareholders."
Highlights:
-- Both investment divisions - Direct Equities and Direct
Projects - now embedded and fully operational;
-- Direct Equity investments completed and announced in respect
of three mineral exploration and development AIM-listed Companies,
including shares and warrants;
-- On-market portfolio of AIM-listed natural resource juniors established;
-- Realised and unrealised gains on Direct Equities investment
portfolio over GBP800,000 in Q4 2014 and Q1 to date;
-- Direct Project joint venture interests negotiated in Spanish
Gold & Tungsten, Thai Gold, Copper and Antimony, and Tanzanian
Gold and Uranium;
-- Project collaboration established with Eurasia Mining Plc
("Eurasia") for new opportunities within Russia;
-- Project Collaboration with Ariana Resources Plc ("Ariana")
established for new opportunities in Turkey;
-- Metal Tiger well funded with significant cash and traded
investments, effectively self-financed for current planned
operations;
-- Exploration activities being carried out in 2015 with
periodic findings to be released through the year.
-- Pipeline of new opportunities expanding, tempered by
disciplined approach to cashflow management to prevent
over-extension;
-- 250,372,466 shares in issue (unchanged since placing at 0.6p announced 10 November 2014);
Overview:
In Metal Tiger's market announcement of 27 January 2015 an
updated strategic approach was outlined including the creation of
two new investment divisions, namely:
Direct Equities - the investment in significantly undervalued
and/or high potential mineral exploration and development listed
shares.
Direct Projects - the investment in mineral projects with the
potential for significant returns for shareholders following the
application of disciplined exploration and development efforts on
the ground.
Both divisions are now fully operational and with the recently
signed Joint Venture in respect of the Spanish Gold & Tungsten
project at Logrosan, both divisions have achieved an early critical
mass from which the company intends to further enhance
organisational diversity, inherent investment value and an
increasingly robust financial position.
Direct Equities Investment Division Review:
Metal Tiger recognises the extremely difficult conditions for
listed junior resource companies. The conditions for companies are
set largely because of a cyclical decline in the resource sector
which itself has caused a multi-year decline in resource equity
share prices and the value of commodity based assets.
However, notwithstanding the difficult conditions, good
companies remain good companies, and from a contrarian perspective
the time to invest in those companies is when valuations are
extremely low and general interest in the resource sector is
minimal.
As an investing company Metal Tiger intends, within the
reasonable stretch of its finances, to be highly proactive. To date
the Company has strategically invested in three London Stock
Exchange AIM-listed companies as follows:
-- Kibo Mining plc ("KIBO") totalling GBP450,000 (GBP150,000 Nov 2014 and GBP300,000 Jan 2015)
-- Eurasia Mining plc ("EUA") totalling GBP150,000 (Dec 2014)
-- Ariana Resources plc ("AAU") totalling GBP75,000 (Feb 2015)
Investors will note that each investee company above is involved
in both mineral exploration and more advanced project development
including potential near-term production. Metal Tiger feels it is
important for the companies in which it strategically invests to
have multiple projects at different stages of maturity. This
shields them from single project risk and provides multiple upside
opportunities for their investors, including Metal Tiger.
The companies Metal Tiger has invested in, and will invest in,
are in Metal Tiger's view on the cusp of major commercial
developments that could transform the value of the investee company
in question.
-- For Kibo Mining commercial partnerships at either the Rukwa
Coal to Power Project or Imweru Gold Project, provide that initial
upside potential.
-- For Eurasia Mining the commercial developments could include
receipt of a Mining Licence for their West Kytlim Platinum project
or the sale of all, or part, of their Monchetundra Platinum
project.
-- For Ariana Resources the receipt of Forestry permits leading
to gold production at their Kiziltepe gold project or the sale of
their interest in the Salinbas/Ardala gold project could provide
the upside opportunity.
There is a distinct rationale for each investment Metal Tiger
has undertaken, and that also extends into the on-market fund of
resource junior equity investments the Company has quietly built in
recent months.
In all cases Metal Tiger is seeking significant multiple returns
on its investments. The Company's first strategic investment in
Kibo Mining has already delivered this, although it must be
accepted that such rapid and dramatic performance cannot be
expected for each investment.
Metal Tiger structures its investments carefully so as to
protect existing investee company shareholders with a reasonable
entry price, not heavily discounted as is the market norm for
secondary placings. Metal Tiger has received warrants with each
investment and those warrants are again structured in a manner that
further supports the investee companies. However the Company is
investing to generate a strong return and the dual shares and
warrants approach provides considerable upside for Metal Tiger
shareholders should the investee companies achieve their strategic
and operational objectives. Further, should the opportunity for
investing in related project activities exist, then that is another
facet of Metal Tiger's involvement that can activate additional
projects for the benefit of both companies.
Metal Tiger will continue to work hard to identify new
opportunities, some of which inevitably pass by because it would be
imprudent to over stretch the business' cashflow. As the Company's
financial strength grows so does its firepower, and its ability to
rapidly build value.
Direct Projects Investment Division Review:
Metal Tiger has built a portfolio of project investments and
collaborations which to date include Joint Ventures with third
parties in respect of the following:
Thailand: Gold, Copper and Antimony exploration interests
covering various licence applications and one granted exploration
licence.
Spain: Gold & Tungsten exploration interests including one
granted licence and two licence applications in Logrosan, situated
in Extremadura, Spain.
Tanzania: Gold and Uranium exploration interests in Tanzania
working in partnership with Kibo Mining plc under Joint Venture
agreements signed in parallel to Direct Equity investments made in
Kibo by Metal Tiger.
In addition to the above four Direct Project investments, Metal
Tiger has agreed working collaborations with two fellow AIM-listed
companies in respect of identified new opportunities.
With Eurasia Mining (LON:EUA), Metal Tiger has a first right of
refusal to participate with Eurasia in Russia on equal terms on any
new opportunities they identify in the period to end June 2016.
With Ariana Resources (LON:AAU), Metal Tiger is to collaborate
on new project opportunities in Turkey, notably in respect of the
new licence auctions that are set to be taking place
in-country.
By undertaking collaborations, Metal Tiger secures access to the
immense in-country expertise of our partners, and exposes Metal
Tiger to upside from new opportunities but with minimal up-front
commitment and risk. This complements the Company's existing Direct
Projects investment portfolio, which is balanced to manage risk
whilst maximising upside exposure for shareholders.
Opportunity Pipeline:
Since June 2014 Metal Tiger has built a pipeline of potential
investments and this pipeline is now more extensive than ever.
Limiting factors include the investable cash and management time,
both of which the Company manages within reasonable levels.
Recognising the diversity, depth and potential value generative
opportunities within Metal Tiger's current portfolio, the Company
will only engage with what the Board considers standout new
opportunities and will update shareholders accordingly as and when
these opportunities arise.
Forward Strategic Plan:
Metal Tiger's forward Strategic Plan is straightforward. The
Direct Equities investment division is designed to generate short,
medium and long term returns, with cash generated invested into the
Direct Projects investment division to advance significant mineral
opportunities that can create tremendous medium and long term
capital value and potentially income distribution from producing
assets.
Metal Tiger's Strategic Plan is by its nature dynamic and
subject to change, as the Company adapts to the challenges and
opportunities of the undervalued natural resources sector and its
eventual emergence into a new cyclical bull market. With the right
assets in place from around the bottom of a cyclical bear market,
Metal Tiger believes very substantial value can be delivered for
shareholders.
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)
Notes to Editors:
Metal Tiger Plc is a natural resources focused investing company
listed 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 listed 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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