Metal Tiger plc Further investment of US$1.1m in Kalahari Metals Limited
May 31 2019 - 6:00AM
UK Regulatory
TIDMMTR
31 May 2019
Metal Tiger plc
("Metal Tiger" or the "Company")
Further investment of US$1.1m in Kalahari Metals Limited
Metal Tiger plc (AIM:MTR), the London Stock Exchange AIM listed
investor in strategic natural resource opportunities, is pleased to
announce a further US$1.1m equity investment into Botswana focused
explorer, Kalahari Metals Limited ("KML"), in which Metal Tiger
currently owns 50% of the issued share capital. The investment will
be satisfied from existing cash resources.
The additional US$1.1m investment will provide full funding for
KML to complete its planned first round drilling at both the Ngami
Copper Project and the Okavango Copper Project, as announced on 23
May 2019. The cutting of access tracks for the 2,100m diamond drill
programme started, on schedule, on 27 May 2019 with mobilisation of
drill rigs planned in the next week.
Further to this investment, Metal Tiger will be issued with
further shares in KML such that its interest will increase to
59.81% of KML however, this will reduce to 53.17% upon completion
of KML's purchase of Kitlanya Limited ("Kitlanya"), as announced on
10 April 2019. The acquisition of Kitlanya by KML is conditional on
change of control consent being obtained in Botswana.
Notwithstanding Metal Tiger's majority shareholding in KML
following this investment, KML does not fall to be treated as a
subsidiary of Metal Tiger as an agreement between the shareholders
of KML precludes Metal Tiger from exercising control.
Michael McNeilly, Chief Executive Officer of Metal Tiger,
commented:
"We are delighted that KML is now fully funded to commence the
first round of drilling at the Ngami and Okavango Copper Projects
and we look forward to initial drill results. This additional
funding will also allow KML to plan further work programs over its
licence holdings and we will make further updates in due course.
The Kalahari Copper Belt is highly prospective and we are confident
that continued exploration work in the region will potentially
result in new, exciting copper discoveries."
Project Background
KML, which was incorporated in England & Wales on 3 May
2017, holds interests in 12 highly prospective exploration licences
covering a total area of 8,595km2 in the Kalahari Copper Belt,
consisting of two 100% owned exploration licences (consisting of
the Ngami Copper Project and the Okavango Copper Project), five
exploration licences subject to a binding earn-in agreement with
Triprop Holdings (Pty) Limited and five exploration licences held
by Kitlanya and which are subject to an agreement with Resource
Exploration and Development Ltd ("RED").
As announced on 10 April 2019, KML has entered into a binding
agreement with RED to purchase 100% of Kitlanya, which is
conditional upon approval of the change of control of Kitlanya
being granted by the authorities in Botswana and receipt of an
updated letter of good standing for the licences. On completion of
the acquisition, the previous earn-in agreement between RED and KML
will terminate.
The net assets and net loss of KML incorporated into the Group's
results for the year ended 31 December 2018 were GBP796,000 and
GBP73,000 (loss) respectively.
For further information on the Company, visit:
www.metaltigerplc.com:
Enquiries:
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 Advisor)
Jack Botros
Nick Emerson SI Capital Limited Tel: +44 (0)1483 413 500
(Joint Broker)
Paul Shackleton Arden Partners plc Tel: +44 (0)20 7614 5900
Steve Douglas (Joint Broker)
Gordon Poole Camarco Tel: +44 (0)20 3757 4980
James Crothers (Financial PR)
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, which
includes its 10.48% interest in MOD Resources Limited ("MOD").
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 JV with MOD and its
interest in Kalahari Metals Limited, 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.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20190531005196/en/
This information is provided by Business Wire
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