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RNS Number : 0031P
Metal Tiger PLC
15 February 2016
Metal Tiger Plc
15 February 2016
Metal Tiger plc
("Metal Tiger" or the "Company")
Spanish Progress Update and Standstill Agreement
Metal Tiger plc (LON:MTR) the London Stock Exchange AIM listed
investor in strategic natural resource opportunities is pleased to
announce an update with regard to the Company's investing
activities in Extremadura, Spain.
Highlights:
- A full review is underway in respect of the entire 2015
Spanish exploration programme and a separate update will be
provided on the achievements of 2015 and the next steps planned in
respect of the Logrosán and Zorita licences;
- Of the EUR500,000 Logrosán spend commitment by Metal Tiger
EUR450,000 has now been paid to the Joint Venture by Metal Tiger
with the remainder to be applied to Maria due diligence drilling
outlined below;
- Work undertaken in 2015 has achieved principal objectives to
delineate the extent of tungsten and gold mineralisation and
delineate extent of mineralisation across key targets;
- Recognising the success to date Metal Tiger are looking to
expand Spanish interests in association with existing Joint Venture
partners;
- A separate standstill agreement ending 10.3.16 has been
reached to provide Metal Tiger with time to conduct due diligence
over the Mineral Exploration Network (Finland) 100% owned Maria
exploration project consisting of the Maria exploration licence
which is principally prospective for gold mineralisation;
- With Metal Tiger's approval the drill rig has now been moved
to Maria to undertake due diligence drilling at that licence which
if successful may lead to the acquisition of an interest in Maria
by Metal Tiger;
- Further updates to follow with regard to drilling results
achieved at Maria and in respect of any commercial transactions
that may be crystallised during or shortly after the due diligence
period.
Paul Johnson, Chief Executive Officer of Metal Tiger plc
commented: "We are delighted with the progress achieved by our
Joint Venture partners in Spain and our experience to date has been
very positive. We are now working with Mineral Exploration Network
(Finland) to consider building on our existing interests with an
additional licence.
This licence is attractive due to the historical information we
have received on the property and the results from work undertaken
by MEN (Finland) in recent times. It is also geographically close
to our other Spanish interests and is principally gold focused.
Metal Tiger is keen to build on our existing interests and also to
add to its gold portfolio and the Maria licence would fit well with
our ambitions.
By moving the drill rig to the Maria Project we gather valuable
exploration data and project information, which will help us during
our due diligence process."
Background to the Logrosán Joint Venture:
Metal Tiger entered into a Joint Venture with Logrosán Minerals
Ltd (a Special Purpose Vehicle "SPV" company incorporated in the
UK) on 13 March 2015. Logrosán Minerals Limited is the operating
company for the Logrosán Exploration Project. Over the prior 18
months, Metal Tiger's joint venture partner in Logrosán Minerals
Ltd, Mineral Exploration Network (Finland) Ltd, had carried out
more than 40,000 soil samples, hundreds of pan-concentrate samples,
covered thousands of linear kilometres with ground magnetic survey
and assessed electro-magnetic tomography. The presence of Tungsten
mineralisation has been confirmed by soil sampling, outcrop
sampling, trenching and historical drill holes. Gold mineralisation
has been confirmed by pan-concentrate and findings to date
delineate three significant anomalies, being one square kilometre
each.
Metal Tiger was to fund up to EUR500,000 in exploration work
over the balance of 2015 in line with an agreed exploration
programme that included up to 5,000 metres of drilling. During this
period ended 31 December 2015 the Joint Venture expended EUR400,000
on exploration work and approximately 4,700m of drilling was
completed.
The remaining EUR100,000 has been rolled over into 2016 with the
agreement of both parties. Since the start of the year Metal Tiger
has paid a further EUR50,000 into the joint venture making payments
to date of EUR450,000. As a result Metal Tiger has now earned into
45% of Logrosán Minerals Ltd in line with funds injected. The
balancing holding in the SPV is held by Mineral Exploration Network
(Finland) Ltd ("MEN (Finland)").
An agreement has been made to enable the remaining EUR50,000 of
exploration work to be undertaken at the Maria Exploration Project,
which is principally prospective for gold, however recent work has
also highlighted a Tungsten target within the licence area that may
warrant further investigation. Further details in relation to
standstill agreement with MEN (Finland) in relation to the Maria
project, are provided below.
The Logrosán Joint Venture SPV holds 2 granted licences and 1
licence application for a total area of 238 square kilometres in
Logrosán, a municipality of the province of Cáceres in Extremadura,
Spain. The exploration licence ("Antonio Caño", 10314-00) covers an
area of 88.85 square kilometres and was granted on 2 December 2013
for a period of three years. The Zorita Exploration Licence covers
an area of 105.96 km2, it is valid for 3 years starting 18 June
2015 and is renewable for a total of 9 years. The "San Cristóbal"
licence application covers a further area of 148.98 square
kilometres adjacent to the "Antonio Caño" licence.
Standstill Agreement - Maria Project:
Metal Tiger has reached an agreement with our Logrosán Joint
Venture partners Mineral Exploration Network (Finland) Limited for
a standstill agreement ending 10 March 2016 during which time Metal
Tiger will be able to conduct due diligence in respect of the Maria
Project, currently held 100% by MEN (Finland) Ltd.
As part of the due diligence process Metal Tiger have agreed to
allow the drill rig to be moved to the Maria Project where drilling
and assay testing will be undertaken to assess the nature and
extent of mineralisation.
Subject to due diligence work, the results encountered and the
normal process of commercial negotiations, Metal Tiger and Mineral
Exploration Network (Finland) Ltd may elect to bring the Maria
Project under Joint Venture between the companies. Unless and until
a commercially binding contract is achieved, there can be no
assurance that a transaction of any nature can or ill be
concluded.
Further information with respect to the Maria Project will be
provided in due course, as appropriate.
Mr Nick O'Reilly (MSc, DIC, MAusIMM, FGS), is a qualified
geologist who meets the criteria of a qualified person under the
AIM Rules - Note for Mining and Oil & Gas Companies, he has
visited the Project Area, overseen the drilling and sampling and
reviewed the technical information contained within this
announcement. Mr O'Reilly is a consultant working for Mining
Analyst Consulting Ltd which has been retained by Metal Tiger PLC
to review the work undertaken on the Logrosán Exploration
Project.
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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