TIDMMTR

23 September 2021

Metal Tiger plc

("Metal Tiger" or the "Company")

Sandfire Update Acquisition of MATSA Mining Complex

Metal Tiger plc (AIM: MTR, ASX: MTR), the AIM and ASX listed investor in natural resource opportunities, is pleased to provide an update in relation to its investment in Sandfire Resources Limited ("Sandfire"). Sandfire has today announced the acquisition of the MATSA Mining Complex in Spain and an A$1,248 million equity raising. Metal Tiger is currently interested in 6,143,357 Sandfire shares representing approximately 3.4% of Sandfire's issued share capital. As announced on 08 December 2020, 2,842,667 of the Sandfire shares held by the Company are subject to an equity derivative financing arrangement with a global investment bank.

Metal Tiger will update shareholders in due course about its intentions with regard to its rights under the equity offer and is currently exploring several options.

Highlights:

   -- Sandfire has entered into a binding sale and purchase agreement with 
      Trafigura and Mubadala Investment Company (the "Vendors") to acquire 100% 
      of Minas de Aguas Teñidas ("MATSA") for a total consideration of 
      US$1,865 million (A$2,572 million). 
 
   -- The agreed transaction delivers Sandfire the MATSA mining complex in 
      Spain, which comprises three underground mining operations feeding a 
      world-class 4.7Mtpa central processing facility with state-of-the-art 
      infrastructure producing 100-120ktpa CuEq per annum. 
 
   -- Provides Sandfire exposure to a long-life and first-quartile low-cost 
      operation, with 12 years mine life based on Resources and significant 
      life extension and exploration potential, and a successful track record 
      of replacing and growing Resources and Reserves. 
 
   -- Transaction immediately transforms Sandfire into one of Australia's 
      largest copper focussed producers with proforma FY22 production of 
      170-194kt CuEq at a MATSA C1 cost of US$0.4-0.5/lb and DeGrussa C1 cost 
      of US$1.0-1.1/lb. 
 
   -- Consideration of US$1,865M implies an acquisition multiple of 4.8x 
      MATSA's FY21 EBITDA of US$387M -- compares favourably to the median 
      EBITDA trading multiple of global peers. 
 
   -- Sandfire to fund the Transaction through a combination of a US$650M 
      (A$897M) syndicated and underwritten debt facility secured by MATSA, an 
      A$1,248M (US$905M) fully underwritten equity raising, A$297M (US$215M) 
      from existing cash reserves and the drawdown of A$200M (US$145M) 
      corporate debt facility. 
 
   -- AustralianSuper, Australia's largest superannuation fund, has committed 
      to subscribe for A$120M of the Placement, and to further sub-underwrite 
      up to A$150M of the Retail Entitlement Offer. 
 
   -- Sandfire intends to retain MATSA's highly experienced in-country 
      management team and supplement with Sandfire's complementary skill set 
      and capabilities, particularly with VMS deposits. 
 
   -- The acquisition of MATSA is expected to be accretive to Sandfire's 
      earnings and cash flow per share in its first full year of ownership 
      (FY23), transforming Sandfire's growth trajectory and providing a 
      cornerstone asset with an anticipated mine life of over 10 years. 
 
   -- MATSA has significant regional upside potential across the 
      highly-prospective Iberian Pyrite Belt, Spain (one of the world's largest 
      concentrations of VMS copper-zinc mineralisation) -- providing a strong 
      foundation for Sandfire's future. 
 
   -- The transaction is expected to complete in the March 2022 quarter, with 
      key conditions precedent including Spanish Foreign Direct Investment and 
      Anti-trust Merger approval.

A link to Sandfire's announcements can be found below:

Transformational Acquisition of the MATSA Mining Complex:

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02425128-6A1051678?access_token=83ff96335c2d45a094df02a206a39ff4

Acquisition of the MATSA Mining Complex Presentation:

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02425130-6A1051681?access_token=83ff96335c2d45a094df02a206a39ff4

For further information on the Company, visit: www.metaltigerplc.com

Enquiries:

 
Michael McNeilly     (Chief Executive Officer)        Tel: +44 (0)20 3287 5349 
Mark Potter          (Chief Investment Officer) 
James Dance          Strand Hanson Limited            Tel +44 (0)20 7409 3494 
 James Harris        (Nominated Adviser) 
 Robert Collins 
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 
 Rebecca Waterworth

Notes to Editors:

Metal Tiger PLC is admitted to the AIM market of the London Stock Exchange AIM Market ("AIM") and the ASX Market of the Australian Securities Exchange Market ("ASX") 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/20210923005358/en/

 
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Metal Tiger plc

 
    SOURCE: Metal Tiger plc 
Copyright Business Wire 2021

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September 23, 2021 03:38 ET (07:38 GMT)

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