TIDMMTR
RNS Number : 7427U
Metal Tiger PLC
11 April 2016
Metal Tiger Plc
11 April 2016
Metal Tiger Plc
("Metal Tiger" or the "Company")
Thailand Silver-Lead-Zinc Mines Standstill Letter Agreement
Metal Tiger plc (LON:MTR) the London Stock Exchange AIM listed
investor in strategic natural resource opportunities is pleased to
provide an update to market in respect of its work to secure an
interest in the Boh Yai and Song Toh Silver-Lead-Zinc mines within
its exploration properties in Kanchanaburi Province, Western
Thailand (the "mines").
Highlights:
- Standstill Letter Agreement ("SLA") now agreed between Metal
Tiger plc, Metal Tiger's 90% owned Thai subsidiary Southeast Asia
Exploration and Mining Co. Ltd ("SEAM") and the owners of the
historical Boh Yai and Song Toh Silver-Lead-Zinc mines (the
"parties");
- SLA provides for a three month standstill agreement allowing
time for the parties to undertake due diligence and to formulate a
formal joint venture agreement, wherein the parties will work
together to secure mine permitting and complete rehabilitation
works with a view to bringing the mines back into production at the
earliest opportunity;
- In consideration for entering into the SLA the Company will
pay the mine owners US$80,000 (GBP56,637) and US$50,000 (GBP35,398)
in Metal Tiger plc shares priced at the closing price on 8(th)
April 2016 of 4.05p which equates to 874,025 new Metal Tiger
ordinary shares. Total consideration payable to the mine owners for
the SLA to be implemented is thus GBP92,035;
- During the standstill period the mine owners agree not to
engage in external discussions with or seek to dispose of their
interest in the mines to, any other third party, save for Metal
Tiger and SEAM;
- The parties are now at a very advanced stage of discussions
with a view to forming a joint venture agreement at the earliest
opportunity. Specifically detailed plans have now been drawn for
mine permitting and the rehabilitation process, and the parties are
currently identifying the professional advisers and processes to be
implemented, when a joint venture agreement has been reached.
Paul Johnson Chief Executive Officer of Metal Tiger plc
commented "Today's announcement marks a major step forward.
Rehabilitation of the mines will be a tremendously positive step
forward for the local community given the many hundreds of jobs
that will be created over the life of mine. The high-grade nature
of the mineralisation, combined with established mine,
infrastructure and processing plant, makes this a unique commercial
opportunity for all parties.
SEAM's engagement with the mine owners over many years has
formed the basis for a very strong and trusting commercial
relationship. That is something all parties wish to preserve and
nurture. Our work in recent months has been very positive and we
would like to thank the mine owners and our advisers in Thailand
for their assistance, professionalism and commerciality.
This SLA provides time for all parties to undertake their
respective due diligence, mostly focused on joint venture agreement
construction and technical features of the project.
Investors should however be aware that mine planning works and
negotiations are very advanced, and it is the desire of all parties
to conclude a commercial transaction at the earliest opportunity.
In this regard we will provide updates to market as material events
occur."
Note: when reviewing this announcement investors are advised to
also review the Company's announcement dated 16(th) February 2016
which detailed the terms of Metal Tiger's acquisition of SEAM
interests in Thailand and which provided the basis for Metal Tiger
to enter into this SLA, through a 90% holding in the Thailand
operational vehicle.
This SLA and the proposed commercial transaction being
considered reflects a major step forward and will enable Metal
Tiger to utilise the considerable project specific research and
information gathered from SEAM's involvement with the mines over a
number of years.
Specifically SEAM has secured Eight Special Prospecting Licence
Applications ("SPLAs") surrounding the historical mining operations
at the Boh Yai and Song Toh Silver-Lead-Zinc mines 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.
In addition, SEAM has created an Exploration and Mining database
relating to the 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 an NI 43-101 resource and Preliminary Economic
Assessment extending to mine planning, geology and micro mine
files, economic modelling and conceptual tailings planning.
Considering the above and the longstanding working relationship
with the mine owners, SEAM in conjunction with Metal Tiger is
exceptionally well placed to assist permitting and mine
rehabilitation.
Admission to Trading and Total Voting Rights:
The 874,025 new ordinary shares are expected to be admitted to
trading on or around 20th April 2016. Following the issue of the
new ordinary shares, the number of ordinary shares in issue in the
Company will increase to 501,883,613. 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 501,883,613 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 listed on the London Stock Exchange AIM
Market ("AIM") with the trading code MTR and invests in high
potential mineral projects with a precious and strategic metals
focus.
The Company'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. The Company's key strategic
objective is to ensure the distribution to shareholders of major
returns achieved from disposals.
Metal Tiger's Metal Projects Division is focused on the
development of its key project interests in Botswana, Spain and
Thailand. In Botswana Metal Tiger has a growing interest in the
large and highly prospective Kalahari copper/silver belt. In Spain
Metal Tiger the Company has tungsten and gold interests in the
highly mineralised Extremadura region. In Thailand Metal Tiger has
expanding interests over licences, applications and critical
historical data covering antimony, copper, gold, silver, lead and
zinc opportunities.
The Company has access to a diverse pipeline of new
opportunities focused on the natural resource sector including
physical resource projects, new natural resource centred
technologies and resource sector related fintech opportunities.
Pipeline projects deemed commercially viable may be undertaken by
Metal Tiger or by an ISDX or AIM partner with whom the Company is
engaged.
Metal Tiger also has an Asset Trading Division that holds
various financial instruments for trading purposes including
equities, warrants and royalty income. The aim of the division is
to generate profits to reinvest into the Company's project based
activities.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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