TIDMMTR
Metal Tiger Plc
16 November 2018
Metal Tiger Plc
("Metal Tiger" or the "Company")
Completion of Sale of T3 Project and creation of New Exploration
Joint Venture with MOD Resources
Metal Tiger plc (AIM:MTR), the London Stock Exchange AIM listed
investor in strategic natural resource opportunities, is pleased to
announce that, further to its announcements of 18 July 2018 and 1
November 2018, both MOD Resources Limited ("MOD") and Metal Tiger
have agreed to waive the only remaining condition precedent to
enable completion of the sale of the Company's interest in the T3
Project, being the approval of the transfer of the remaining 10
exploration licences held by the existing joint venture arrangement
between the parties to Tshukudu Exploration (Pty) Ltd ("Tshukudu
Exploration"), a new joint venture ("New JV") company held by MOD
(70%) and Metal Tiger (30%).
Eight of the 18 exploration licences have already been
transferred to the New JV with the remaining 10 exploration
licences currently being held in trust for the benefit of the New
JV until such time as they are transferred to Tshukudu Exploration
following receipt of the requisite Ministerial approval in
Botswana. The remaining licence, PL190/2008, which includes the T3
Project, will be held on trust for Tshukudu Exploration, and all
areas excluding the T3 Project will form part of the New JV.
Accordingly, the sale of the T3 Project and the creation of the
New JV, as detailed in the announcement of 18 July 2018, has
completed in full.
As a result, Metal Tiger has been issued with 17,090,000 MOD
shares (the "Consideration Shares"), and 40,673,566 unquoted
options with a nil exercise price and expiring on 15 November 2021
(the "Options") (together with the Consideration Shares, the "MOD
Securities"). Following the issue of the Consideration Shares,
Metal Tiger will be interested in 31,064,220 MOD shares,
representing 12.5% of MOD's then enlarged share capital. Metal
Tiger is restricted from disposing of any of the Consideration
Shares, as well as any MOD shares issued pursuant to the conversion
of the Options, for a period of 12 months from completion.
The Options represent approximately 16% of MOD's enlarged share
capital (as enlarged by the Consideration Shares) and will reduce
the impact of any dilution of Metal Tiger's shareholding in MOD as
a result of any future MOD equity issuance or any sale of shares by
Metal Tiger. As previously announced, Metal Tiger may exercise the
Options by converting them into one MOD share each, provided Metal
Tiger owns equal to or less than 12.5% of MOD after completing such
conversion. The MOD Securities represent, in aggregate,
approximately 25% of MOD's diluted share capital (as enlarged by
the Consideration Shares) assuming only exercise of the Options
and, on this look-through basis, taken with its 30% interest, this
would give Metal Tiger an effective 47% interest in the New JV.
Whilst the aggregate number of MOD Securities issued to Metal
Tiger remains the same, the proportion of Consideration Shares to
Options has been amended to ensure that the Company does not own
more than 12.5% of MOD's issued share capital following Metal
Tiger's on-market purchase of 94,178 MOD shares, as announced on 10
September 2018. All other terms and conditions of the transaction
remain the same, including the right of Metal Tiger to appoint a
nominee to the MOD Board whilst the Company owns at least 10% of
MOD. Accordingly, Metal Tiger is pleased to announce that Michael
McNeilly has been appointed to the Board of MOD as a nominee of
Metal Tiger, with immediate effect.
Michael McNeilly, Chief Executive Officer of Metal Tiger,
commented:
"We are very pleased to have completed this landmark transaction
with MOD. This deal demonstrates Metal Tiger's ability to create
significant shareholder value through its investment strategy,
having achieved a significant uplift in the value of its investment
in the T3 Project which has been used to further enhance our
already strong balance sheet.
We believe that this transaction represents an exceptional
outcome for both MOD and Metal Tiger shareholders and completion
sees Metal Tiger becoming MOD's largest shareholder. In addition to
this, following completion, MOD now has the flexibility, through
100% ownership of the T3 Project, to maximise the benefits of
available financing options relating to the T3 project.
Through its increased interest in MOD and the New JV, the
transaction places Metal Tiger in a strong position to benefit from
the underexplored, district scale potential of the Kalahari Copper
Belt. I look forward to working with the experienced team at MOD as
they look to become a mid-tier copper producer."
This announcement coincides with an update released today by MOD
which can be viewed through the following link:
https://www.asx.com.au/asx/share-price-research/company/MOD
For further information on the Company, visit:
www.metaltigerplc.com:
Michael McNeilly (Chief Executive Officer) Tel: +44 (0)20 7099 0738
Mark Potter (Chief Investment Officer)
Richard Tulloch Strand Hanson Limited Tel +44 (0)20 7409 3494
James Dance (Nominated Adviser)
Jack Botros
Nick Emerson SI Capital (Broker) Tel: +44 (0)1483 413 500
Gordon Poole Camarco (Financial PR) Tel: +44 (0)20 3757 4980
James Crothers
Monique Perks
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 base, precious and strategic
metals focus.
The Company's target is to deliver a high return for
shareholders by investing in significantly undervalued and/or high
potential opportunities in the mineral exploration and development
sector. The Company's key strategic objective is to ensure the
distribution to shareholders of major returns achieved from
disposals. Metal Tiger has two investment divisions, Direct
Equities and Direct Projects.
The Direct Equities division invests in undervalued natural
resource companies listed on AIM, the ASX and the TSX. Through the
trading of equities and warrants, Metal Tiger seeks to generate
cash for investment in the Direct Projects division.
Metal Tiger's Direct Projects division is focused on the
development of its key project interests in Botswana, Spain and
Thailand. In Botswana, Metal Tiger, through its 12.5% interest in
MOD Resources Limited and related JV, has a growing interest in the
large and highly prospective Kalahari copper/silver belt. In Spain,
the Company has tungsten and gold interests in the highly
mineralised Extremadura region. In Thailand, Metal Tiger has
interests in two potentially near-production stage lead/zinc/silver
mines as well as licences, applications and critical historical
data covering antimony, copper, gold, lead, zinc and silver
opportunities.
The Company actively assesses new investment opportunities on an
on-going basis and has access to a diverse pipeline of new
opportunities in the natural resources and mining sectors. For
pipeline opportunities deemed sufficiently attractive, Metal Tiger
may invest in the project or entity by buying publicly listed
shares, by financing privately and/or by entering into a joint
venture.
Background information on the T3 Project
The T3 Project is located on the Kalahari Copper Belt in
northern Botswana and is a Copper/Silver Project. T3 is located
within the central part of the T3 Dome Complex (approximately 1,000
km2), which is the focus of rapidly increasing exploration activity
undertaken by MOD. Two significant resources have been discovered
to date within the T3 Dome: T1 (Mahumo deposit 100% MOD) and T3
(100% MOD).
The T3 Deposit was discovered in March 2016 when a reverse
circulation ("RC") drill hole intersected 52m @ 2.0% Cu and 32g/t
Ag from shallow depth. The maiden T3 JORC (2012) compliant Mineral
Resource Estimate was announced on 26 September 2016 with the first
Resource upgrade announced on 24 August 2017. The results of a
Scoping Study for an open pit mine at T3 with a 2Mtpa processing
plant, an indicative mine life of 10 years and an average
production rate of 21,800tpa of copper and 665,000oz pa of silver
was released on 6 December 2016. Work on a Pre-Feasibility Study
(PFS) commenced in January 2017 and additional deeper copper
mineralisation was discovered below the T3 Resource in February
2017.
The Phase 2 drilling at the T3 Copper/Silver Deposit commenced
on 7 August 2017, with approval granted for the recommencement of
both diamond core ("DC") and RC drilling at the T3 Project and its
vicinity, through to December 2018 (which has subsequently been
extended to December 2020). This included 90 DC drill holes
designed to infill the Resource and test for possible extensions.
The objective of the infill programme is to increase geological
confidence and upgrade categorisation of the T3 Resource. The
programme also included grid drilling to investigate the potential
for an underground Resource down-dip and along strike from the
planned open-pit, and to investigate geophysical targets. Drilling
approval has been granted for the wider T3 Dome with the acceptance
of the T3 Dome EMP announced on 3 April 2018.
The results of the T3 Open Pit Pre-Feasibility Study were
announced on 31 January 2018; the revised and upgraded T3
Copper/Silver Deposit Mineral Resource Estimate was announced on 2
July 2018; and a Resource re-classification announced on 16 July
2018.
The T3 Open Pit Feasibility Study, towards a decision to mine,
is currently underway.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20181115006103/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
November 16, 2018 02:00 ET (07:00 GMT)
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