Metal Tiger PLC Option over Gold Production Opportunity (7570F)
November 16 2015 - 2:00AM
UK Regulatory
TIDMMTR
RNS Number : 7570F
Metal Tiger PLC
16 November 2015
METAL TIGER PLC
16 November 2015
Metal Tiger plc
("Metal Tiger" or the "Company")
Option over Gold Production Opportunity
Metal Tiger (LON:MTR), the natural resources investing company
is pleased to announce the Company has secured an option to
participate in a gold tailings production opportunity alongside
Eurasia Mining (LON:EUA) plc ("Eurasia"). This option was secured
under the new project collaboration agreement signed by Eurasia and
Metal Tiger as announced to market on 29 December 2014.
Metal Tiger has agreed to pay $25,000 immediately to secure an
option with Eurasia that affords Metal Tiger the opportunity to
elect to participate in the Semenovsky Tailings Project ("STP") on
equal terms with Eurasia. The option period expires on 12 February
2016.
If Metal Tiger exercises its option, it will fund up to $100,000
of exclusivity work programme costs i.e. an additional $75,000 plus
the $25,000 option already paid. The forecast exploration costs of
the exclusivity period are $72,000, with the additional $28,000
being a contingency for unforeseen expenses.
Should Metal Tiger exercise its option, and both companies
confirm they wish to pursue the STP opportunity by the end of the
exclusivity period, the project financial and operational risks and
rewards will be shared equally between Eurasia and Metal Tiger. It
is anticipated that this will be in the form of a specially formed
Joint Venture held through a UK private limited company.
Readers are advised to review the market announcement issued by
Eurasia Mining today which provides full details with regard to
this opportunity. This announcement can be viewed on the Eurasia
website www.eurasiamining.co.uk.
Highlights of the STP
Eurasia Mining has signed a Heads of Terms ("HOT") agreement
whereby Eurasia has the right to participate in a gold tailings
opportunity. The principal highlights in respect of this
opportunity are summarised as follows (Extracted from EUA market
announcement - 16.11.15):
-- HOT agreement signed in respect of the STP, a near term gold
production opportunity in Russia;
-- HOT provides for a six month period of exclusivity enabling
technical study completion, sampling, metallurgical testing and
general due diligence;
-- Early stage, internal work undertaken by the Company
indicates potential total gross revenue of approximately $57m over
a 8.5 year mine life, with net project total cash inflow of
approximately $29m or $3.5m per annum;
-- The same work by the Company has provisionally estimated that
project net present value is c.$14m at a 10% discount rate, project
IRR of 65% and project payback within 1 year of production
start-up, against a total estimated plant construction cost of
approximately $5m. These figures will be reviewed and updated when
Eurasia has undertaken more detailed work on the site;
-- The STP is the first potential project to emerge from the
EUA/MTR collaboration announced on 29 December 2014, and is the
first in a potential series of near-term producing opportunities
available.
Cameron Parry, CEO of Metal Tiger commented: "We are very
pleased to see the collaboration with Eurasia delivering its first
opportunity. We consider the prospect of early gold production to
be a major step forward for Eurasia particularly as this
complements the existing platinum production planned for 2016 at
Eurasia's West Kytlim project.
By securing this 3 month option, Metal Tiger has the time to
review the proposals in further detail and potentially opt-in to
this project. By doing so we will expose Metal Tiger shareholders
to the same early gold production, sharing the financial and
operational risks and rewards with Eurasia.
This collaboration between our companies demonstrates the
potential advantage that comes if smaller listed resource companies
work together. We are looking forward to working with Eurasia
during the option period and potentially thereafter in respect of
the Semenovsky Tailings Project."
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 Tel: +44 (0) 2033
(Nominated Adviser) 683 555
Sean Wyndham-Quin
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, Botswanan Copper & Silver, 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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