Metal Tiger plc Additional Investment in Red Rock Resources
September 06 2016 - 10:57AM
UK Regulatory
TIDMMTR
Metal Tiger Plc
("Metal Tiger" or the "Company")
Additional 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 investment in Red Rock Resources (LON:RRR)
("Red Rock").
Note:We would also refer readers to our announcements dated 29
April 2016 and 24 August 2016 for details of the earlier
investments in Red Rock made by Metal Tiger. As announced on 24
August 2016 Metal Tiger purchased 25,000,000 shares in a strategic
financing undertaken by Red Rock taking the Company's holding in
Red Rock following admission of placing shares to 78,571,427 shares
or 16.81% of issued share capital.
On 7 September 2016 Metal Tiger purchased an additional
2,500,000 shares in Red Rock on the market at an average price per
share of 0.4199p increasing Metal Tiger's holding to 81,071,427
shares equating to 17.35% of Red Rock's issued share capital.
In addition in association with the financing announced on 24
August 2016 Metal Tiger received 25,000,000 24 month warrants to
subscribe for additional Red Rock shares at a price of 0.80p over
the next two years. These warrants are added to the 29,761,904
0.84p warrants received with a 30 month exercise period from Metal
Tiger's participation in the April 2016 financing.
Paul Johnson, the Chief Executive Officer of Metal Tiger plc
commented: "We continue to build our position in Red Rock in line
with our corporate objective of securing larger positions in
undervalued resource companies. We note the update provided by Red
Rock yesterday confirming the receipt of first oil revenues, an
instalment payment following the disposal of the Colombian gold
project and progress being made with regard to negotiations in
respect of the CML promissory note. Recognising the small market
capitalisation of Red Rock, the receipt of circa US$231,000 cash is
a material development and the potential for a negotiation of the
promissory note position and further incoming working capital is
even more attractive.
Whilst the market fails to recognise the value and potential of
companies like Red Rock, Metal Tiger will continue to accumulate.
Recent history has taught the market that share prices of resource
companies perpetually decline, however a slightly longer historical
view demonstrates we are in a cyclical business and the upside
swings can be as impressive as the downside falls are
demoralising.
Metal Tiger now holds 17.35% of Red Rock and we look forward to
the business flourishing as the sector continues what we believe is
a strong recovery phase. In addition Metal Tiger holds Red Rock
circa 54.7m Red Rock warrants to acquire additional shares at
further increasing our exposure to the upside potential.
Finally, Metal Tiger will shortly make its nomination request
for a seat on the board of Red Rock."
In the financial year ended June 2015 RRR made a loss of
GBP8,411,541 (unaudited interims to 31 December 2015 loss of
GBP22,025) and had net assets of GBP7,527,488 (unaudited 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)
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/20160906006074/en/
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