TIDMMTR
3 September 2020
Metal Tiger plc
("Metal Tiger" or the "Company")
Participation in Southern Gold's Oversubscribed A$10.2 million
Fundraise
Metal Tiger plc (AIM: MTR), the London Stock Exchange AIM listed
investor in natural resource opportunities, is pleased to announce
that it has participated in Southern Gold Limited's ("Southern
Gold") significantly oversubscribed, A$10.2 million equity
fundraising (the "Fundraise") announced earlier today. Southern
Gold intends to utilise the net proceeds of the Fundraise to, inter
alia, execute multiple drilling campaigns on multiple targets in
its growing gold-silver project portfolio in South Korea over the
next two years.
Southern Gold received commitments significantly over the amount
ultimately raised pursuant to the Fundraise. The Fundraise has been
cornerstoned by strategic investor, Crescat Capital LLC ("Crescat
Capital"), which has agreed to invest A$2.5 million (the "Crescat
investment"). Crescat Capital is advised by Dr Quinton Hennigh, who
is currently a director of, and technical advisor to, Irving
Resources Inc, CEO of Novo Resources Corp. and a director of
TriStar Gold Inc., Precipitate Gold Corp. and NV Gold Corp.
As part of the Fundraise, Metal Tiger has conditionally
subscribed for 14,569,000 new Southern Gold shares at a price of
A$0.12 per share for a total consideration of A$1,748,280 (the
"Subscription"). In addition, as part of the Subscription, Metal
Tiger will be issued with 7,284,500 2-year warrants with an
exercise price of A$0.18 per warrant.
The Fundraise will be settled in two tranches. The first tranche
comprises A$3.8 million and is not subject to approval by Southern
Gold's shareholders. The second tranche (which includes the Crescat
investment), raising the balance of A$6.4 million, is subject to
the approval of Southern Gold's shareholders at a general meeting,
which is proposed to be held in mid-October 2020, with settlement
of the second tranche occurring in late October/early November
2020.
Metal Tiger's Subscription forms part of the second tranche and
is therefore conditional on the approval of Southern Gold's
shareholders. Assuming shareholder approval is received for the
Subscription, Metal Tiger will be interested in 36,569,000 Southern
Gold shares, maintaining its existing equity interest of 17.1%, and
7,284,500 2-year A$0.18 warrants.
Michael McNeilly, Chief Executive Officer of Metal Tiger,
commented:
"When Southern Gold was identified as a potential investment
opportunity for Metal Tiger, we were particularly excited about the
geological potential in South Korea for gold exploration and the
significant exploration portfolio the company had already
established in-country.
"At the time of the Company's initial investment in Southern
Gold, it was our firm belief that the company would have the
potential to attract significant institutional interest,
particularly out of North America, given the perceived technical
merits of its portfolio and first-mover country presence.
"We consider today's Fundraise by Southern Gold to not only
support Metal Tiger's investment thesis but to also validate our
belief that the company would attract significant international,
institutional support. Alongside support from investors in North
America and Australia, we are also pleased to note that there was
strong interest from investors based in Asia.
"We are pleased to see Southern Gold raise significant firepower
and attract, what we consider to be, the type of investors required
to support the long-term development of its portfolio and,
ultimately, to drill test the geological potential of South Korea.
Furthermore, we believe that, with this latest fundraise, the
barriers to entry to prospective explorers looking to gain a
foothold in South Korea will become even higher as Southern Gold
progresses its exploration programmes. As such, should a
significant gold discovery be made, we expect Southern Gold to have
a strategic market and in-country advantage over potential
competitors.
"In addition to this, we are excited to welcome Crescat Capital
as a fellow significant shareholder. We believe that Crescat
Capital's investment demonstrates their similar perception of
Southern Gold's strong strategic position in South Korea. We would
also note Dr Quinton Hennigh's involvement with Crescat Capital and
his significant track record in identifying high-value gold
investments."
Southern Gold is an ASX-listed mining company seeking to become
an internationally recognised high-grade gold-silver project
generator in South Korea. For the year ended 30 June 2019, Southern
Gold reported a loss before tax of A$10.1 million and, as at 31
December 2019, Southern Gold reported net assets of A$8.6 million.
Michael McNeilly, Metal Tiger's Chief Executive Officer, is a
non-executive director of Southern Gold.
Southern Gold's announcements in respect of the Fundraise can be
found via the following links:
https://www.asx.com.au/asxpdf/20200903/pdf/44m939h0tg81h8.pdf
https://www.asx.com.au/asxpdf/20200903/pdf/44m93cd4ffwp4m.pdf
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
Enquiries:
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.
END
View source version on businesswire.com:
https://www.businesswire.com/news/home/20200903005327/en/
CONTACT:
Metal Tiger plc
SOURCE: Metal Tiger plc
Copyright Business Wire 2020
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