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RNS Number : 5013J
Metal Tiger PLC
07 April 2015
Metal Tiger Plc
("Metal Tiger" or the "Company")
New Equity Investment in Ariana Resources
Metal Tiger (LON: MTR), the natural resources investing company
is pleased to announce a new strategic Direct Equity investment in
Ariana Resources plc ("Ariana") (LON:AAU).
Highlights:
-- Metal Tiger to invest an additional GBP100,000 in Ariana
Resources plc at 0.9p per share to acquire a further 11,111,111
shares;
-- Metal Tiger to receive 11,111,111 warrants to subscribe for
new ordinary shares in Ariana Resources plc at 1.8p per share with
a three year exercise period;
-- Metal Tiger to retain its right to subscribe for a further
GBP75,000 into Ariana by 30 June 2015 at 0.9p per share.
Metal Tiger's CEO Cameron Parry commented: "Metal Tiger is
delighted to have the opportunity to invest in Ariana Resources,
post the release of the positive Scoping Study conducted on their
Salinbas project, at the same 0.9p share price Metal Tiger paid for
its previous equity investment announced eight weeks ago.
This investment, which is funded from Metal Tiger's existing
cash resources, provides Metal Tiger shareholders with an enhanced
exposure to the considerable upside potential and strength of the
Ariana value proposition which potentially includes impending gold
production at Kiziltepe and the possibility of a high value
disposal of their interest in the Salinbas/Ardala asset.
Furthermore the Metal Tiger Board believes this investment
demonstrates our confidence in the Salinbas Scoping Study which was
based on work undertaken by highly regarded consultants and
advisors who are located in those parts of the world that fully
understand developing open pit gold mines."
Earlier Subscription Agreement Summary
Metal Tiger previously announced on 5 February 2015 a Direct
Equity Subscription by the Company into Ariana Resources plc of
GBP75,000 at 0.9p per share amounting to a purchase of 8,333,333
new ordinary shares in Ariana.
As part of this investment Metal Tiger received 8,333,333
warrants to subscribe for new ordinary shares in Ariana Resources
plc at 1.8 per share with an exercise period of 3 years from the
subscription date.
Furthermore Metal Tiger also agreed to subscribe for an
additional GBP75,000 on the same subscription terms within 20
business days of the receipt of forestry permits by Ariana by 30
June 2015. However, with Metal Tiger's new investment of GBP100,000
announced today, the exercise of the option for this further
GBP75,000 will now be solely at Metal Tiger's election; all other
terms and conditions remain the same. Receipt of the permits will
enable construction of Ariana's Kiziltepe gold production facility
and mine to commence shortly thereafter.
At Metal Tiger's volition this second subscription could be
accelerated and completed at any time prior to 30 June 2015. Should
Ariana dispose of their Salinbas/Ardala for in excess of
$15million, the exercise price of any unexercised warrants will
increase by 50% to 2.7p per share.
New Subscription Agreement Information
Metal Tiger has now agreed a new Direct Equity Investment into
Ariana Resources plc of GBP100,000 at 0.9p per share for 11,111,111
new ordinary shares in Ariana. As part of this investment, Metal
Tiger will receive an additional 11,111,111 warrants to subscribe
for new ordinary shares in Ariana at an exercise price of 1.8p per
share and with an exercise period of 3 years. This investment
tranche is separate and in addition to the earlier subscription
agreement announced on 5 February 2015.
Metal Tiger retains the right to subscribe for an additional
GBP75,000 at 0.9p per new ordinary share in Ariana by 30 June 2015,
on the basis outlined in the earlier subscription agreement as
announced on 5 February 2015, save that this subscription is now to
be solely at Metal Tiger's volition.
Including this investment announced today, Metal Tiger's Direct
Equities division has to date invested GBP175,000 into Ariana
Resources plc, with the potential for an additional investment of
GBP75,000 as outlined above. In addition, Metal Tiger now holds a
total of 19,444,444 warrants to subscribe for further equity in
Ariana at a minimum of 1.8p per share.
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.
Collaboration
As announced on 5 February 2015, Metal Tiger and Ariana have
agreed to collaborate to identify and consider new resource
opportunities in Turkey where both parties may be able to
participate. Most notably both companies are keen to consider new
opportunities that may arise in respect of fresh licence auctions
taking place in Turkey. Further information will be provided 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
(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
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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