TIDMMTR
13 July 2020
Metal Tiger plc
("Metal Tiger" or the "Company")
Completion of Fourth Financing Arrangement
Metal Tiger plc (AIM:MTR), the London Stock Exchange AIM listed
investor in natural resource opportunities, is pleased to announce
that, further to the Company's announcements of 17 December 2019,
20 May 2020 and 9 June 2020, it has entered into a further equity
derivative collar financing arrangement (the "Fourth Financing
Arrangement") with the Lender pursuant to the Umbrella
Facility.
The Fourth Financing Arrangement is secured over, in aggregate,
280,141 Sandfire Shares held by Metal Tiger, representing
approximately 0.16% of Sandfire's issued share capital.
Under the terms of the Fourth Financing Arrangement, Metal Tiger
has:
1. entered into a stock lending arrangement with the Lender, pursuant to
which the Lender (or an affiliate of the Lender) can borrow up to, in
aggregate 280,141 Sandfire Shares from Metal Tiger;
2. obtained the right (but not the obligation) to sell 93,536 and/or 186,605
Sandfire Shares to the Lender in three years' time at 80% of the
reference price, being A$5.203 and A$5.216 respectively (subject to
customary adjustments) (the "Reference Price") (each a "Put");
3. granted the Lender the right (but not the obligation) to buy 93,536
and/or 186,605 Sandfire Shares from Metal Tiger in three years' time at
an agreed premium of 145% of the respective Reference Price (each a
"Call"); and
4. borrowed, in aggregate, A$1.168m from the Lender, secured on a
combination of the above with a maturity date of 10 July 2023 (the
"Further Loan").
Metal Tiger has the right to elect to settle the Put and the
Call by way of physical delivery of Sandfire Shares or by way of a
cash payment reflecting the value of the respective Put and Call at
the time.
Costs of approximately A$0.168m associated with the Fourth
Financing Arrangement (inclusive of all interest obligations and
the net cost of the equity derivative collar for the term of the
Third Financing Arrangement) have been deducted from the aggregate
Further Loan proceeds, resulting in Metal Tiger receiving A$1.0m of
cash proceeds. The net proceeds will be used to fund potential
investment opportunities.
Metal Tiger can agree with the Lender to utilise the balance of
Sandfire Shares held by it to increase the size of the financing
arrangement at a later date. Following the Fourth Financing
Arrangement, and together with the Initial Financing Arrangement,
the Second Financing Arrangement and the Third Financing
Arrangement (as announced on 17 December 2019, 20 May 2020 and 09
June 2020 respectively) (together the "Arrangements"), A$11.595m
(which has been adjusted accordingly for Sandfire's 2020 half year
dividend) is outstanding pursuant to the Umbrella Facility.
As announced on 9 June 2020, the Lender agreed to extend the
date on which the Commitment Fee is payable (in the event the total
balance outstanding is under A$20m) to 30 September 2020 from 30
June 2020. Following the Fourth Financing Arrangement, the maximum
Commitment Fee payable by Metal Tiger is approximately A$84k.
The Arrangements are secured over, in aggregate, 2,573,173
Sandfire Shares held by Metal Tiger, representing approximately
1.44% of Sandfire's issued share capital. Metal Tiger currently
holds 6,296,990 Sandfire Shares.
Unless otherwise defined in this announcement, capitalised terms
shall have the same meanings as set out in the announcement of 17
December 2019.
Commenting on today's financing arrangement, Mr Michael
McNeilly, Chief Executive Officer of Metal Tiger, said:
"The Board is considering some near-term investments and is
increasing the Company's cash position in order to have additional
firepower and flexibility to make these investments. We look
forward to providing shareholders updates on future investment
opportunities as appropriate."
This announcement contains inside information for the purposes
of the market abuse regulation (EU No. 596/2014) ("MAR").
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 (Nominated Tel +44 (0)20 7409 3494
James Dance Adviser)
Jack Botros
Paul Shackleton Arden Partners plc (Broker) Tel: +44 (0)20 7614 5900
Steve Douglas
Gordon Poole Camarco (Financial PR) Tel: +44 (0)20 3757 4980
James Crothers
Hugo Liddy
Notes to Editors:
Metal Tiger plc is admitted to the AIM market of 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. Metal Tiger has two investment divisions: Equity
Investments and Project Investments.
Equity Investments invests in undervalued natural resource
companies. The majority of its investments are listed on AIM, the
TSX and the ASX, which includes its interest in Sandfire Resources
Limited (ASX: SFR). The Company also considers selective
opportunities to invest in private natural resource companies,
typically where there is an identifiable path to IPO. Through the
trading of equities and warrants, Metal Tiger seeks to generate
cash for investment for the Project Investments division.
Project Investments is focused on the development of its key
project interests in Botswana, where Metal Tiger has a growing
interest in the large and highly prospective Kalahari copper/silver
belt through its interest in Kalahari Metals Limited.
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/20200713005327/en/
CONTACT:
Metal Tiger plc
SOURCE: Metal Tiger plc
Copyright Business Wire 2020
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