MTR Metal Tiger Plc

 
TIDMMTR 
 
 

Metal Tiger Plc24 AUGUST 2016

Metal Tiger Plc("Metal Tiger" or the "Company")

Additional Strategic Investment in Red Rock Resources

Metal Tiger plc (LON:MTR) the London Stock Exchange AIM listed investor in strategic natural resource projects is pleased to announce an additional strategic investment in Red Rock Resources (LON:RRR) ("Red Rock").

We would refer readers to our announcement dated 29 April 2016 for details of the earlier investment in Red Rock made by Metal Tiger.

Highlights:

 
 
    -- Metal Tiger to subscribe for 25,000,000 new ordinary shares in Red 

Rock at 0.4p per new ordinary share for a total additional investment

of GBP100,000;

 
    -- Metal Tiger to receive an additional 25,000,000 warrants exercisable 

at 0.8p and with a 24 month longevity from admission to trading of the

Red Rock placing shares on AIM;

 
    -- Following the transaction Metal Tiger will hold 78,571,427 shares in 

Red Rock representing 16.81% of the post financing issued share

capital;

 
    -- In addition following the transaction Metal Tiger will hold 29,761,904 

warrants in Red Rock exercisable at 0.84p (see announcement dated 29

April 2016 for warrant terms) and 25,000,000 warrants exercisable at

0.8p (warrant terms as outlined above);

 
    -- MTR intends to exercise its right (granted previously in conjunction 

with the 29 April 2016 Red Rock financing) to nominate a non-executive

director to the board of Red Rock.

Paul Johnson, the Chief Executive Officer of Metal Tiger plc commented: "We are pleased to announce an increase in our shareholding in Red Rock Resources. The board of Metal Tiger is keen to continue to expand our investments in natural resource companies where we believe there is significant share price upside potential as the resource sector moves into a full recovery phase.

We recognise the importance of stability and security that Red Rock has generated through income from oil sales, sale proceeds from Colombia and also through Red Rock's investments notably in Jupiter Mines and Goldstone Resources.

That said, we also recognise that in a recovering resource market environment the best returns for shareholders can often lie in the reigniting of investment in hard rock mineral deposit opportunities, notably within precious and strategic metals. We are pleased that the Red Rock management team shares our thoughts in this regard and will seek to drive the strategic direction of the company to open up to the development of hard rock opportunities.

Red Rock has demonstrated an ability to deliver substantial returns from low sector sentiment conditions and we believe is worthy of further investment in readiness for the next recovery phase."

In the financial year ended June 2015 RRR made a loss of GBP8,411,541 (interims to 31 December 2015 loss of GBP22,025) and had net assets of GBP7,527,488 (interims to 31 December 2015 net assets of GBP7,947,994).

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) 
                        Limited                   2033 683 555 
  Neil Baldwin          (Nominated Adviser)       www.sparkadvisorypartners.com 
  Nick Emerson          SI Capital                Tel: +44 (0) 
                                                  1483 413 500 
  Andy Thacker          (Sole Broker) 
 
 

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/20160823006289/en/

 
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(END) Dow Jones Newswires

August 24, 2016 02:00 ET (06:00 GMT)