METAL TIGER PLC: Sandfire Update Acquisition of MATSA Mining Complex
September 23 2021 - 3:38AM
UK Regulatory
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/
CONTACT:
Metal Tiger plc
SOURCE: Metal Tiger plc
Copyright Business Wire 2021
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