TIDMMTR
RNS Number : 1414P
Metal Tiger PLC
16 February 2016
Metal Tiger Plc
16 February 2016
Metal Tiger plc
("Metal Tiger" or the "Company")
Thailand Expansion - Option Exercised
Metal Tiger plc (LON:MTR) the London Stock Exchange AIM listed
investor in strategic natural resource opportunities is pleased to
announce confirmation that the Company has exercised its option to
acquire the remainder of South East Asia Mining's ("SEAM") Thailand
interests details of which were announced to market on 24 November
2015.
Highlights:
- Metal Tiger has exercised the option to acquire the remainder
of SEAM Thailand interests providing a robust portfolio of
interests in-country;
- After concurrent disposal of 10% to a local Thai operating
Company Metal Tiger will own 90% of expanded Thai interests;
- A cash payment made to vendors, SEAM, of US$200,000 funded
entirely from existing resources, and a shares payment of
US$300,000 of 23,799,000 shares at 0.87p calculated on a 14 day
vwap prior to SEAM shareholder approval;
- A potential further cash payment of US$100,000, a $60,000
working capital contribution and issue of 23,799,000 warrants over
Metal Tiger ordinary shares, subject to SEAM being granted its
primary target prospecting licence 1/2557 in the Kanchanaburi
province in Western Thailand; and
- Metal Tiger is actively engaged with Thai operating partners
to continue work programme across the Thai interests and to
investigate additional opportunities.
Paul Johnson, Chief Executive Officer of Metal Tiger plc
commented: "we are delighted to announce the exercise of this
option which sees Metal Tiger acquire 90% of the entire SEAM
Thailand portfolio and which provides the Company with a
significant portfolio of precious and strategic metal interests in
Thailand.
The strategic value of this acquisition is very important as we
build our investment in Thailand. That investment is lent more
credibility because the local Thai operating team, including key
members of the SEAM organisation, have extensive operating
experience in Thailand.
With this acquisition now undertaken, our focus moves to
building on this foundation by investing in work on the ground in
our existing interests and by adding new opportunities that offer
material value upside for shareholders.
We will ensure shareholders are kept fully updated at the
earliest opportunity as we move to develop our Thai interests
through organic growth and additional opportunities."
Terms of Option Exercise:
Metal Tiger has now elected to exercise its option to acquire
the remainder of SEAM's Thailand interests (the "SEA Option") with
an initial consideration of US$500,000 (the "Consideration"). This
is satisfied by a combination of cash and shares as outlined
below.
A payment of US$200,000 in cash (the "Cash Payment") which has
been funded from existing cash resources and US$300,000 through the
issue of 23,799,000 new ordinary shares in Metal Tiger (the "Share
Payment") at a price of 0.87p, calculated per new ordinary share
being the volume weighted average price ("VWAP") for the 14-day
calendar period immediately prior to SEA shareholder approval of
the SEA Option which occurred at a General Meeting of the SEAM
shareholders on 12 January 2016.
In addition, Metal Tiger has also agreed that subject to SEAM
being granted its primary target prospecting licence 1/2557 in the
Kanchanaburi province in Western Thailand, it will pay SEA
shareholders a further US$100,000 in cash, advance a further sum of
US$60,000 to be used by SEAM for working capital (specifically
coverage of payments which become due only on the licence being
granted) and grant to SEA shareholders a number of warrants
(23,799,000 ) equal to the number of new ordinary shares issued as
part of the satisfaction of the Share Payment element of the
Consideration (the "SEAM Warrants"). The SEAM Warrants will be
subject to a 3 year term from the date of exercise of the SEA
Option and will be subject to an exercise price of twice the share
price per ordinary share at which the Share Payment is issued
(1.74p).
Thailand Interests Now 90% held by Metal Tiger:
Following exercise of the exercise of the SEA option, the
following interests are now 90% held by Metal Tiger, with 10% held
by a local Thai operating company:
- Eight Special Prospecting Licence Applications ("SPLAs")
surrounding the historical mining operations at Boh Yai and Song
Toh Silver-Lead-Zinc mines in Western Thailand where historical
Metallgesellschaft and German consultant records indicate over five
million tonnes of crude ore was processed producing approximately
520,000 tonnes of concentrate to smelter over a 22 year period;
- Exploration and Mining database specifically relating to Boh
Yai and Song Toh mines. This includes local/regional mapping, soil
& rock chip sampling and three geophysics programs. Furthermore
the dataset includes material utilised to produce a NI 43-101
resource and Preliminary Economic Assessment extending to mine
planning, geology and micro mine files, economic modelling and
conceptual tailings planning;
- Two Mining Lease Applications overlaying historical
Kanchanaburi mining lease applications;
- One Exclusive Prospecting Licence Application ("EPLA") in
respect of a Gold-Antimony focused project in the Chanthaburi
province, in the South East of Thailand where the Company has
published findings from initial work undertaken by the JV during
2015 including the identification of gold anomalies requiring
further investigation;
- One Mining Lease Application in the Chanthaburi province
situated in what is known locally as the 'Gold-Antimony Belt';
and
- Two SPLAs covering 31 square kilometres and relating to
projects in the Nakon Sawan and Lopburi provinces within the
Loei-Phetchabun part of what is known locally as the 'Copper-Gold
Belt'.
Share Issue to SEAM - Summary
Metal Tiger is issuing SEAM with 23,799,000 Metal Tiger new
ordinary shares at price per share of 0.87p (the "Acquisition
Shares").
The acquisition shares are expected to be admitted to trading on
or around 22(nd) February 2016. Following the issue of the
Acquisition Shares, the number of ordinary shares in issue in the
Company will increase to 442,799,795. For the purposes of the
Financial Conduct Authority's Disclosure and Transparency Rules
("DTRs"), the issued ordinary share capital of Metal Tiger
following this allotment consists of 442,799,795 ordinary shares
with voting rights attached (one vote per share). There are no
shares held in treasury. This total voting rights figure may be
used by shareholders as the denominator for the calculation by
which they will determine whether they are required to notify their
interest in, or a change to their interest in, Metal Tiger under
the DTRs.
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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