TIDMMTR
Metal Tiger Plc
23 August 2016
Metal Tiger Plc
("Metal Tiger" or the "Company")
Thailand - Commercial Mines Joint Venture Agreement Signed
Metal Tiger plc (LON:MTR) the London Stock Exchange AIM listed
investor in strategic natural resource opportunities is pleased to
announce that on Saturday 20 August 2016 the Company successfully
concluded commercial negotiations and a Joint Venture Agreement
("JVA") was signed in respect of the Song Toh and Boh Yai
Silver-Lead-Zinc mines in Western Thailand. The JVA was subject to
certain regulatory clearances which were received on 22 August
2016.
The JVA governs the process and ownership elements of a
transaction where the principal objective is to permit and bring
back into production the Silver-Lead-Zinc mines at Boh Yai and Song
Toh (the "Mineral Properties").
We refer readers to the market announcement by the Company dated
11 April 2016 covering the Standstill Letter Agreement (the "SLA")
relating to the Mineral Properties, as extended by the Company's
announcement dated 7 July 2016.
The parties to this JVA are the Karnchanaburi Exploration and
Mining (KEMCO) Company Limited ("KEMCO"), Boh Yai Mining Company
Limited ("BYMC") and Pornnaret Klipbua ("Pornnaret") the majority
and controlling shareholder of both KEMCO and BYMC (the "Mine
Vendors"). Also, Metal Group Co. Ltd ("Metal Group") and Metal
Tiger Exploration Company Limited ("MTE") (the "Joint Venture
Companies"); and finally Metal Tiger plc (as defined above).
KEMCO and BYMC hold several Historical Mining Lease Applications
and the physical mining and processing plant assets at the centre
of this transaction.
Paul Johnson, Chief Executive Officer of Metal Tiger
commented:
"We are delighted to confirm a successful outcome to our
contractual negotiations and this signed JVA. The Boh Yai and Song
Toh mines represent an exceptional opportunity for all parties to
this agreement and we look forward to the Joint Venture pushing
proactively forward. As is Metal Tiger's policy we will continue to
regularly update the market with developments.
The Joint Venture will be proactively pursuing the various
stages of the permitting process and the structure of the
transaction is such that near term transactional costs are modest,
with the larger payments scheduled for post permitting approvals
when the inherent value of the project should have increased
materially.
A transaction of this type, in effect a collaboration between
Thai interests and a UK listed entity, are relatively rare at the
moment. Given our knowledge of the Thailand business environment,
and the opportunities available, we are very pleased to reach this
pivotal stage.
The JVA represents the culmination of a significant amount of
work by all parties and Metal Tiger would like to note on record
its thanks for the dedication and support of all the parties
engaged in this process of negotiations.
Metal Tiger is privileged to be investing in Thailand, a country
that holds substantial opportunities for respectful, diligent and
committed investors. We would reiterate that our objective is to
invest in and help develop Thai resource opportunities, for the
primary benefit of the Thai people, and to do so with an absolute
focus on the protection of the environment and the communities with
whom we engage.
As part of our communications and in addition to the engagement
we are undertaking in Thailand we will be holding meetings in the
UK with our Thai Joint Venture partners and Corporate Social
Responsibility Manager present, to enable any shareholders,
investors and other market participants to have their questions and
queries addressed in a public forum."
Pornnaret Klipbua, Managing Director of KEMCO and BYMC
commented:
"I am delighted with the successful outcome following extensive
negotiations with Metal Tiger and their Thai Joint Venture
Partners. Metal Tiger with their financing capability and their
Thai Joint Venture Partners with their sector and in-country
knowledge have demonstrated to me that they have the requisite
abilities to make this a highly viable partnership and I look
forward to diligently working with them to successfully permit and
bring back into production the Song Toh and Boh Yai
Silver-Lead-Zinc mines.
This is an exciting project that will provide hundreds of jobs
in Kanchanaburi and be of major benefit to the local Thai economy
as well as the Thai people in general. It is my firm belief that
this partnership will lay the foundation for further investment
opportunities for Metal Tiger in the natural resources sector in
Thailand."
Highlights:
-- Metal Tiger has agreed a right for its Thai Joint Venture Companies to
acquire 80% of the shares of BYMC which holds several Mining
Lease
Applications. In addition, the transactional rights include
the
transfer of granted licences from KEMCO into BYMC thereby
centralising
the Mineral Property interests into one operating company.
-- All activities in respect of operations shall be managed on behalf of
the parties by various JV Management Committees. Metal Tiger
will
provide finance against an agreed budget. All operational
matters are
solely in the hands of the local Joint Venture team.
-- The transaction is based on defined payments set against a defined
delivery schedule and a commitment from Metal Tiger plc to fund
up to
US$1,500,000 in respect of permitting costs. Reflecting the
acquisition of ownership rights the following payments are to be
made
to the Mine Vendors:
-- Total of US$130,000 on signing the SLA payable as US$50,000 in cash
and US$80,000 payable in Metal Tiger shares (US$130,000 already
paid);
-- Total of US$800,000 on signing the JVA payable as US$400,000 in cash
and US$400,000 payable in Metal Tiger shares (payable no later
than 2
September 2016);
-- Total of US$6,000 per month which amounts to US$108,000 over an
estimated 18 month permitting period for the general costs of
the Mine
Vendors including the costs of maintaining the current staff
base
keeping the mines on a care and maintenance basis whilst
permitting is
undertaken;
-- Total of US$500,000 payable in cash on the granting of BYMC Mining
Lease Applications;
-- Total of US$625,000 payable as US$250,000 in cash and US$375,000 in
Metal Tiger plc shares on the commencement of construction (ie
plant,
housing, water treatment and some mine refurbishment);
-- Total of US$625,000 payable as US$250,000 in cash and US$375,000 in
Metal Tiger plc shares on the commencement of commercial
mineral
production;
-- Total of US$1,500,000 in respect of a hire purchase agreement on
production to transfer the physical assets of the mine and
processing
plant into the BYMC;
-- In addition the Joint Venture will guarantee the Mine Vendors, against
their ownership interest an annual a minimum of US$200,000
profit
share for the first five years of mine operations (ie
US$1,000,000 in
total guaranteed).
Reflecting all the above the total payments, at the volition of
Metal Tiger with the exception of the initial JVA signature payment
of US$800,000, to secure the specified Thai JV interest in the
Mineral Properties amounts to US$5,288,000 (or GBP4,008,171 at
current US$ to GBP currency translation rate).
-- Payments are focused on the key stages of project development with
most payable only on the achievement of permitting,
construction/refurbishment and production milestones over an
estimated
two year period.
-- This announcement has been prepared with summary transaction
information enabling an expeditious release in line with the
latest
Market Abuse Regulations. Further announcements will be made in
due
course to detail the overall JVA operational and strategic plans
in
respect of the Mineral Properties.
As at 31 December 2015 being the date of the last published
accounts KEMCO had net liabilities of Thai Baht 1,244,332 and made
a loss for the year of Thai Baht 1,502,102.
As at 31 December 2015 being the date of the last published
accounts BYMC had net liabilities of Thai Baht 1,848 and made a
loss for the year of Thai Baht 131,271.
Note: This announcement contains inside information which is
disclosed in accordance with the Market Abuse Regulation.
For further information on the Company, visit:
www.metaltigerplc.com:
Paul Johnson (Chief Tel: +44 (0)7766 465 617
Executive Officer)
Terry Grammer (Non- Tel: +44 (0)207 099 0738
Executive
Chairman)
Sean Wyndham-Quin Spark Advisory Partners Tel: +44 (0)
Neil Baldwin Limited 2033 683 555
Nick Emerson (Nominated Adviser)
Andy Thacker SI Capital www.sparkadvisorypartners.com
(Sole Broker) Tel: +44 (0)
1483 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.
View source version on businesswire.com:
http://www.businesswire.com/news/home/20160823005722/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
August 23, 2016 07:26 ET (11:26 GMT)
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