TIDMMTR
Metal Tiger plc
("Metal Tiger" or the "Company")
Investment into Armada Exploration Limited
Metal Tiger plc (AIM: MTR), the London Stock Exchange AIM listed
investor in natural resource opportunities, is pleased to announce
that it has signed an investment agreement with Armada Exploration
Limited, a Mauritian holding company ("Armada" or the "Company")
which owns 100% of Armada Exploration (Gabon) SARL. Armada holds
two exploration licences, prospective for magmatic Ni-Cu sulphide,
in Gabon, covering a total area of nearly 3,000km(2) . The licence
holding is considered to present a frontier district-scale
exploration opportunity.
Metal Tiger has subscribed for 5,000,000 new ordinary shares at
a price of US$0.15 in Armada for total consideration of US$750,000
via a promissory note with US$350,000 to be invested up-front and
with the $400,000 to be paid in monthly instalments of US$80,000
over the next five months. In the event of a public listing Metal
Tiger will need to settle any outstanding amounts under the
promissory note in full at the time of the public listing.
Following completion, Metal Tiger will own 18.5% of the issued
ordinary share capital of Armada. Metal Tiger will be given the
right to appoint a director to the Board of Armada (or equivalent
top co, in the event of a restructuring as part of a listing);
Metal Tiger has not yet opted to take up this right.
Highlights:
-- US$750,000 invested for 18.5% of the Company alongside RCF Opportunities
Fund L.P. ("RCF") and Cobre Limited ("Cobre").
-- Cobre is investing US$750,000 for an 18.5% interest. Metal Tiger
has a 19.99% equity interest in Cobre.
-- Compelling geology at the district scale: the location along the Congo
Craton margin with a complex regional-scale fault network has permitted
extensive volumes of mafic melt to intrude into sulphide-bearing country
rocks ("basement") assisting the potential formation of magmatic Ni-Cu
sulphide deposits.
-- Using a combination of regional soil surveys and mapping, existing
airborne magnetic, radiometric and electromagnetic (versatile time domain
electro-magnetic or "VTEM") geophysical survey data, Armada has
delineated an initial 18 named targets, situated along this distinct
basement corridor.
-- Copper and nickel sulphide occurrences have been mapped at surface at
three top ranked targets (Libonga North, Matchiti Central and Doumvou).
-- The results from detailed whole rock geochemical studies have proven
peridotite to gabbro fractionation suites at the Libonga North and
Matchiti Central targets.
-- The 20km-long Libonga-Matchiti Trend ("LMT") is drill ready.
-- A new high resolution 707-line km time domain electromagnetic ("HTDEM")
survey is in progress, using New Resolution Geophysics ("NRG(TM)")
Xcite(TM) airborne electromagnetic system1 at the Libonga North, Matchiti
Central and Doumvou targets.
-- A drilling programme of 3,000m is planned to commence in the second half
of 2021.
-- An IPO is targeted for 2021 coinciding with drill rig mobilisation.
-- Experienced leadership team with a serially successful track record of
involvement in major discoveries as well as extensive operational
experience in Central and Southern Africa.
Michael McNeilly, Chief Executive Officer of Metal Tiger,
commented:
"We are pleased to invest in Armada, which presents a district
scale opportunity with compelling geology. This frontier is
significantly under-explored, which makes it so exciting, and we
welcome the longer-term proposal for Armada to undertake an
IPO."
"Armada has completed significant work to create a compelling
geological model that has delineated multiple drill-ready projects.
Should the initial work programme prove successful it has the
potential to create significant value uplift across all of the
untested targets and increase the overall attractiveness of the
district."
"Given its experienced leadership team, who have a successful
track record of involvement in major discoveries and operational
experience in Central and Southern Africa, we look forward to the
results of Armada's upcoming operational phase."
Background on Armada
Armada was established to define new belt-scale discovery
opportunities for key commodities (principally nickel and copper)
in under-explored regions of Africa. With >US$10m spent
targeting an area of >16,000km(2) , Armada is preparing to drill
a multi-target project opportunity for magmatic Ni-Cu sulphides in
the Nyanga area, southern Gabon. Armada is supported by a Board and
Africa-based technical team both with a track record of successful
African projects. Key members of the Armada targeting team were
part of the team awarded the 2015 PDAC Thayer Lindsley Award for an
International Mineral Discovery (as members of the Kamoa/DRC
discovery team with Ivanhoe Mines).
For the year ended 31 December 2020, Armada recorded a net loss
of US$89,369 and, as at 31 December 2020, reported net assets of
US$9,288,843.
Technical Summary
Armada presents a first-mover advantage in the exploration for
magmatic nickel-copper sulphide deposits in Gabon. Through its two
exploration licences (G5-150 and G5-555 -- see Table 1 below) the
company holds rights to 2,991 km(2) of ground associated with the
Congo Craton margin. The basement within the licence areas have
been intruded by a suite of mafic and ultramafic intrusions which
represent the primary target for magmatic Ni-Cu mineralisation in
this area.
The craton margin setting of the Armada project area is
considered to represent a region of relatively thin lithosphere
which became the focus of strain during successive regional
tectonic events resulting in the continued reactivation of
potential crustal-scale fault networks which facilitated the
emplacement of, potentially metal-sulphide rich, magmatic melts
into the crust.
Using a combination of existing airborne magnetic, radiometric
and electromagnetic geophysical survey data interpretations and
regional soil surveys Armada has delineated an initial 18 named
targets, situated within this distinct basement corridor.
The three highest ranking targets coincide with two parallel
structural trends. The Libonga North and Matchiti Central targets
sit along a 20km long north to northwest striking feature defined
as the Libonga-Matchiti Trend ("LMT"). The LMT has been delineated
from magnetic and radiometric datasets and is characterised by a
series of mafic and ultramafic intrusive bodies.
The top three ranked targets, Libonga North and Matchiti Central
(the LMT) and Doumvou were subject to field mapping, soil and
whole-rock geochemical sampling and ground gravity geophysical
surveys. The ground gravity surveys outlined gravity anomalies
interpreted as dense bodies, whilst detailed Cr, Ni and Cu soil
geochemistry further defined and confirmed areas underlain by
mafic-ultramafic lithologies.
The Libonga North target sits at the northern end of the LMT and
is coincident with a gravity anomaly (a dense body), a VTEM
conductor, and regional Ni-Cu (Cr) anomalism identified from
geochemical soil sampling. The Libonga North target has been
investigated by detailed field mapping with visible chalcopyrite
occurrences identified in a number of field localities within the
confines of the intrusion boundaries. Rock samples collected during
the mapping programs were submitted for detailed whole rock
geochemical assessment with results, interpreted independently,
suggesting peridotite to gabbro fractionation suites, with the
conclusion that the intrusions resulted from potentially multiple
pulses of magma, bearing the potential for development of a
mineralising system.
Preliminary geological modelling of the Libonga intrusion points
to a sill-like body which plunges gently to the northwest.
Initially, two high priority drill holes are planned to intersect
the highest conductors interpreted from the existing VTEM data
where there is spatial overlap with dense bodies mapped from the
gravity data.
Plate modelling using Maxwell software and layered earth
inversions of the NRG(TM) Xcite(TM) airborne electromagnetic data
will be used to plan the drilling programmes.
Planned Follow-up Work Streams
Detailed Geophysics and Drilling Programme
-- A 707-line km Xcite(TM) helicopter-borne time domain electromagnetic
'HTDEM' survey at 200m line spacing along the LMT and the Doumvou target
is due for completion in March 2021. Layered earth inversions using
Geoscience Australia code, inversions of magnetic data using Fullagar's
VPmg code and plate modelling using Maxwell software is planned.
-- A minimum of 3,000m of drilling is planned across three targets, with
holes planned to a depth of approximately 350m to the interpreted base of
the intrusion. The drilling programme will be supported by helicopter.
-- Priority 1 Drill Target: Libonga North. NRG(TM) Xcite(TM) airborne
electromagnetic survey and data modelling with a minimum of 1,000m
of core drilling to test for potential sulphide trap sites.
-- Priority 2 Drill Target: Matchiti Central. NRG(TM) Xcite(TM)
airborne electromagnetic survey and data modelling with a minimum
of 1,000m of core drilling to test the denser and more conductive
units interpreted from the data modelling.
-- Priority 3 Drill Target: Doumvou Target. NRG(TM) Xcite(TM)
airborne electromagnetic survey and data modelling with a minimum
of 1,000m of core drilling to test the potential prospectivity of
an interpreted northeast- southwest trending fault suture.
Regional Programme
-- Detailed mapping and rock grab sampling.
-- The NRG(TM) Xcite(TM) airborne electromagnetic survey may be extended out
on a regional belt scale (dependant on drilling results).
-- Priority targets identified by the regional programme will be escalated
for follow-on investigation.
Table 1 Exploration Permit Details (1, 2)
Exploration Licence Name Commodity Award / Term In good
Permit Groups Renewal Date standing and
Number renewable
G5-150 Malounga Base Metals 10 July 2019 3 years Yes,
including renewable
nickel, for another
copper, zinc 3-year
& lead term.in July
2022
G5-555 Mayombe Base and 25 April 2018 3 years Yes,
Precious renewable
Metals for two
further
3-year terms
in April
2021 and
2024
Table 1 Notes:
(1) : Exploration Permit translates from French 'Permis de
Recherche Minière'.
(2) : Licences are subject to a 1.5% royalty granted to Denham
Capital and a 0.5% NSR royalty held by RCF. In addition, Denham
Capital hold a US$10.5m deferred payment obligation which is to be
repaid if a mine is developed within the current licences.
Further details are available under the Portfolio section of the
Company's website at:
https://www.metaltigerplc.com/portfolio/project-investments/Armada-Exploration
Reference Note:
1. Xcite(TM) is a new generation of helicopter-borne time-domain
electromagnetic (HTDEM) systems, developed by New Resolution Geophysics
(NRG(TM)) who are an airborne geophysical company specialising in the
collection of ultra-high resolution airborne data. Further details are
available at
https://www.airbornegeophysics.com/our-services/xcite-%E2%84%A2-helicopter-time-domain-electromagnetics-and-magnetics.html
Qualified Person's Statement
The technical information contained in this announcement has
been read and approved by Mr Nick O'Reilly (MSc, DIC, MIMMM,
MAusIMM, FGS), who is a qualified geologist and acts as the
Qualified Person under the AIM Rules - Note for Mining and Oil
& Gas Companies. Mr O'Reilly is a Principal consultant working
for Mining Analyst Consulting Ltd which has been retained by Metal
Tiger PLC to provide technical support.
This announcement contains inside information for the purposes
of the market abuse regulation (EU No. 596/2014).
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)
James Dance Strand Hanson Limited Tel +44 (0)20 7409 3494
Jack Botros (Nominated Adviser)
Georgia Langoulant
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/20210319005059/en/
CONTACT:
Metal Tiger plc
SOURCE: Metal Tiger plc
Copyright Business Wire 2021
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