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RNS Number : 8922O
Metal Tiger PLC
12 February 2016
METAL TIGER PLC
12 February 2016
Metal Tiger plc
("Metal Tiger" or the "Company")
Gold Production Opportunity Update
Metal Tiger (LON:MTR), the natural resources investing company
is pleased to announce an update with regard to the option over
Semenovsky Tailings Project ("STP") which is being undertaken by
Eurasia Mining plc (LON:EUA)("Eurasia").
We would refer readers to our announcement dated 16 November
2015 which provided details of the original option agreement and
then project fundamentals.
Highlights:
- Option agreement expiry date extended to 15 March 2016 to
allow additional time for review of recently received project data
and for liaison with a third party who have expressed an interest
in project participation via Metal Tiger;
- Metal Tiger to pay a further $25,000 to Eurasia Mining for
option extension bringing total payments to date to $50,000 to be
offset against maximum commitment of $100,000 for initial due
diligence work by the partners should Metal Tiger proceed by 15
March 2016;
- Latest project data demonstrates significantly improved
project financials including a 64% increase in Net Present Value to
$23m reflecting improved project economics and a favourable
Rouble/US Dollar exchange rate;
- Further work is continuing actively to collate, review and assess detailed project data.
Paul Johnson Chief Executive Officer of Metal Tiger said "We are
pleased to secure the option period extension which provides the
additional time to review the new information received on the
project and to liaise with third parties as appropriate.
The project fundamentals are looking increasingly robust and we
are extremely pleased to see this strengthening which has occurred
in part from the work undertaken during the due diligence
phase.
We look forward to finalising our work and reporting back to
market in due course."
Background to Semenovsky Tailings Project
On 16 November 2015 the Company secured an option to participate
in a gold tailings production opportunity alongside Eurasia Mining.
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 agreed to pay $25,000 immediately in November to
secure an option with Eurasia that afforded Metal Tiger the
opportunity to elect to participate in the Semenovsky Tailings
Project ("STP") on equal terms with Eurasia. The option period
expired on 12 February 2016 but with a further payment of $25,000
has now been extended until 15 March 2016.
If Metal Tiger exercises its option, it will fund up to $100,000
of exclusivity work programme costs i.e. an additional $50,000 plus
the $50,000 option payments already made. 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:
In November 2015 Eurasia Mining 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 - 12.2.16 and reflecting the February 2016 data and
the original November 2015 data in brackets):
-- HOT agreement signed in respect of the STP, a near term gold
production opportunity in Russia;
-- HOT provides for a six month period (From November 2015
onwards) of exclusivity enabling technical study completion,
sampling, metallurgical testing and general due diligence;
-- Latest internal work undertaken by Eurasia indicates
potential total gross revenue of approximately $86m (Nov15: was
$57m) over a 10 year mine life (Nov 15: 8.5 year life), with net
project total cash inflow of approximately $51m (Nov 15: $29m) or
$5.1m per annum (Nov 15: $3.5m per annum);
-- The same work by Eurasia has provisionally estimated that
project net present value is c$23m (Nov 15: c.$14m) at a 10%
discount rate, project IRR of 82% (Nov 15: 65%) and project payback
within 1 year of production start-up, against a total estimated
plant construction cost of approximately $5.2m (Nov 15: $5m).
The figures given above are given for guidance only and are
subject to updating, correction and verification. The figures will
be reviewed and updated when Eurasia has undertaken more detailed
work on the site.
For further information on the Company, visit:
www.metaltigerplc.com:
Paul Johnson Tel: +44 (0)7766
(Chief Executive 465 617
Officer)
Terry Grammer Tel: +44 (0)207
(Non- Executive 099 0738
Chairman)
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 significance 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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