TIDMMTR
RNS Number : 7023L
Metal Tiger PLC
13 January 2016
Metal Tiger Plc
13 January 2016
Metal Tiger Plc
("Metal Tiger" or the "Company")
Strategic Investment into MOD Resources
Metal Tiger plc (LON:MTR) the London Stock Exchange AIM listed
investor in strategic natural resource opportunities is pleased to
announce an investment in the shares of MOD Resources Limited
("MOD" or "MOD Resources") (ASX:MOD), the Company's Joint Venture
("JV") partner in Botswana.
Highlights:
- Metal Tiger investment of A$350,000 at a price of A$0.006 per
share acquiring 58,333,333 shares in MOD representing 4.92% of MOD
Resources issued share capital;
- Metal Tiger also granted 29,166,666 ASX-listed warrants
(referred to as 'options' on the Australian Stock Exchange) to
subscribe for additional new ordinary shares in MOD Resources at a
price of A$0.01 per share with an exercise period extending until 1
May 2018;
- The Board of Metal Tiger see this as an important strategic
investment which complements its JV partnership in respect of the
Kalahari Copper belt project in Botswana as announced by Metal
Tiger on 10 November 2015;
- The investment strengthens the link between the two JV
partners and provides Metal Tiger an enhanced upside should the
Botswanan interests of Metal Tiger and MOD progress well and in
line with expectations.
Cameron Parry, Chief Executive Officer of Metal Tiger commented:
"The Board recognise the importance of strategically investing into
opportunities with the potential to compound the benefit for Metal
Tiger.
Having had further opportunity to consider the MOD Resources'
wider value proposition we believe that MOD is considerably
undervalued when set against the existing stage of business
development. Furthermore, should our plans progress as anticipated,
the flourishing of the Botswanan Copper/Silver projects should
deliver on a tremendous upside potential.
We are therefore delighted to secure these ASX-listed shares and
listed warrants and will continue to work closely with MOD to
progress our combined business interests in Botswana and to
communicate the value of the Botswanan assets to investors in the
United Kingdom, Australia and generally on a global basis."
Transaction terms:
Metal Tiger has participated in the Non-Renounceable Pro-Rata
Rights issue of MOD Resources originally announced by MOD via the
ASX on 22 September 2015 and which can be viewed via the following
link: http://www.modresources.com.au/#!asx-announcements/cknx.
Metal Tiger has invested A$350,000 in new shares of MOD at a
price of A$0.006 for 58,333,333 shares. This represents 4.92% of
the issued share capital of MOD.
In addition Metal Tiger receives 29,166,666 ASX-listed MOD
warrants (referred to as 'options' on the Australian Stock
Exchange) which provide Metal Tiger the right to purchase an
additional 29,166,666 new shares in MOD at a price of A$0.01 at any
time up to 1 May 2018. These warrants are listed and thus holders
of warrants are able to trade the warrants (referred to as
'options') via the ASX.
MOD Resources - Background
MOD resources have two areas of operations including Botswanan
Copper/Silver and New Zealand Gold.
Botswana
In Botswana MOD has a vast and strategic tenement footprint at
the centre of the Kalahari Copper Belt, of more than 12,700 km(2)
(including the 6,300km(2) area covered under its JV with Metal
Tiger). MOD's licence interests range from 80% to 100%, and 70% in
respect of the licences recently secured in Joint Venture with
Metal Tiger.
Within MOD's wholly owned licence interests is the Mahumo Copper
Project where the Company is undertaking a scoping study in line
with its plans to produce high-grade copper concentrate.
Sedgman Limited (ASX:SDM) the provider of services in the
design, construction and operation of mineral processing plants has
signed an Memorandum of Understanding with MOD to inject up to
US$1.5million into feasibility studies including engineering and
management services in exchange for 10% of the project and for
certain rights to design, construct and operate a processing
plant.
New Zealand
In New Zealand MOD have 80% ownership of the Sam's Creek project
which currently has an existing JORC compliant inferred resource of
20.47Mt @1.54g/t (0.7 cut-off) 1,014,000 gold ounces.
As at 31 December 2014, MOD held assets of AUD$9,215,772 and
reported a loss for the year before income tax from continuing
operations of AUD$10,184,247.
Further information about the MOD portfolio can be seen at the
Company's website www.modresources.com.au:
For further information on the Company, visit:
www.metaltigerplc.com:
Cameron Parry Tel: +44 (0)207
(Chief Executive 099 0738
Officer)
Paul Johnson Tel: +44 (0)7766
(Executive 465617
Director)
Sean Wyndham-Quin Spark Advisory Partners Tel: +44 (0) 2033
Neil Baldwin Limited 683 555
Nick Emerson (Nominated Adviser) www.sparkadvisorypartners.com
Andy Thacker SI Capital Tel: +44 (0) 1483
(Sole Broker) 413 500
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 Projects and
Direct Equities.
The Direct Projects division invests in mineral exploration
projects operated by trusted partners on the ground. Projects are
selected for their strategic significant in terms of commodity,
location and commerciality factors. Key strategic investments to
date include Spanish Gold & Tungsten, Thai Gold, Copper &
Antimony, and Botswanan Copper & Silver.
The Direct Equities division invests in quoted natural resource
explorers and developers, with a combination of shares and warrants
and seeks generate trading profits for reinvestment into the Direct
Projects division.
Metal Tiger's target is to deliver a very 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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