METAL TIGER PLC: Completion of Investment in Sandfire Resources Limited
October 05 2021 - 3:52AM
UK Regulatory
TIDMMTR
Metal Tiger plc
("Metal Tiger" or the "Company")
Completion of Investment in Sandfire Resources Limited
Metal Tiger plc (AIM: MTR, ASX: MTR), the AIM and ASX listed
investor in natural resource opportunities, is pleased to announce
that, further to the announcement on 27 September 2021, it has
completed its entitlement rights investment in Sandfire Resources
Limited ("Sandfire"). Metal Tiger has subscribed for and received
3,300,690 new fully paid ordinary Sandfire Shares ("Sandfire
Shares") for a total cost of A$17,823,726.
Metal Tiger has financed this partially via the sale of
1,051,990 Sandfire Shares at an average price of A$5.22 per
Sandfire Share, existing cash and by entering into a 12-month,
A$9,000,000 margin lending facility agreement with a nominee of SC
Lowy Primary Investments Ltd, which is secured against 4,714,286
Sandfire Shares held under a tripartite sponsorship deed with an
Australian broker (the "Margin Lending Facility").
Summary of key terms of Margin Lending Facility:
-- 10% interest rate per annum (rising to 15% in the event of a default)
from 4 October 2021, payable semi-annually (i.e. at 6 and 12 months
thereafter).
-- Ability to extend for a further year, for a small fee.
-- Provides Metal Tiger with the ability to free up collateral under the
Margin Lending Facility in the event that coverage exceeds 3.5 times the
then outstanding loan amount plus accrued interest.
-- Metal Tiger has flexibility to free up liquidity by selling the Sandfire
Shares that are security for the Margin Lending Facility, over a period
of 5 trading days, with an aggregate value of not less than A$1,000,000
at the time the trade instructions are given, and provided the coverage
exceeds the minimum-security cover maintenance levels on the outstanding
loan amount plus accrued interest.
-- Metal Tiger can apply the proceeds of any sale to either:
-- Pay and repay all amounts payable under the Margin Lending
Facility in full; or
-- As a prepayment to the amount outstanding under the Margin Lending
Facility, to the extent that following such prepayment, the
collateral value is at least the multiple of the loan amount
outstanding plus accrued interest that it was before the sale
instructions were given; and
-- Any surplus after such application shall be released to Metal
Tiger.
-- Establishment fee of A$300,000 and arranger fee of A$50,000.
-- The agreement is subject to security cover maintenance levels and margin
levels that are deemed commercially acceptable and standard for a
transaction of this nature.
-- Metal Tiger maintains rights over all ordinary course of business
dividends received from Sandfire.
Following completion of this investment Metal Tiger is currently
interested in 8,462,057 Sandfire Shares representing approximately
2.4% of Sandfire's issued share capital (post institutional raise).
Of this holding, 2,842,667 Sandfire Shares are subject to an equity
derivative financing arrangement with a global investment bank.
Michael McNeilly, Chief Executive Office of Metal Tiger,
commented:
"The Margin Lending Facility allows Metal Tiger to maintain
leverage to any potential upside in Sandfire over an extended
period, with what the Board considers to be an appropriate level of
risk, thanks to strong liquidity rights over collateralised shares.
I would like to extend my gratitude to Adrian Bock, Chief Financial
Officer of Metal Tiger, without whom securing the Margin Lending
Facility would not have been possible. To conclude such a financing
arrangement in such a short timeframe is a significant
achievement."
This announcement contains inside information as defined in
Article 7 of the EU Market Abuse Regulation No 596/2014 and has
been announced in accordance with the Company's obligations under
Article 17 of that Regulation.
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/20211005005509/en/
CONTACT:
Metal Tiger plc
SOURCE: Metal Tiger plc
Copyright Business Wire 2021
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