METAL TIGER PLC: Update on Margin Lending Facility
December 14 2022 - 2:00AM
UK Regulatory
TIDMMTR
14 December 2022
Metal Tiger plc
("Metal Tiger" or the "Company")
Update on Margin Lending Facility
Metal Tiger plc (AIM: MTR, ASX: MTR), the AIM and ASX listed
investor in natural resources opportunities, is pleased to note
that, further to the announcement on 5 October 2021 and subsequent
announcements on 21 June 2022, 24 June 2022 and 6 December 2022 it
has entered into a new A$15m Margin Lending and Drawdown Facility
with a sub-fund of SC Lowy SI II (SG) VCC which will be used for,
among other purposes, repaying the approximately A$0.85m loan
balance outstanding on the previous Margin Lending Facility and be
drawn down to repay the A$7,042m loan against 1,675,125 Sandfire
Resources Limited shares ("Sandfire Shares") secured under the
equity derivative financing arrangement with a global investment
bank on 16 December 2022. Following the release of the Sandfire
Shares, Metal Tiger will have 5,012,626 Sandfire shares within the
facility against an outstanding loan balance of A$8.345m. The
remainder of the Margin Lending and Drawdown facility of A$6.65m
will remain available to the Company to draw down for at least a
year from today's date to acquire additional Sandfire shares.
Summary of key terms of Margin Lending and Drawdown
Facility:
-- Interest rate of 30-day BBSY Bid plus a margin of 8% per annum (rising an
additional 5% in the event of a default) payable from 15 December 2022,
on the last business day of each month; the current inferred rate is
11.01%.
-- 12-month term with the option to extend for a further year, for a fee of
3% of the facility.
-- Provides Metal Tiger with the ability to free up collateral under the
Margin Lending and Drawdown 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 and Drawdown Facility,
over a period of five trading days, with an aggregate value of not less
than A$1,000,000 at the time the trade instructions are given, provided
no event of default is continuing and 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 all amounts payable under the Margin Lending and Drawdown
Facility in full; or
-- as a prepayment to the amount outstanding under the Margin Lending
and Drawdown 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; or
-- in the second year of the term (if applicable), acquire further
Sandfire shares, provided the coverage exceeds the
minimum-security cover maintenance levels on the outstanding loan
amount plus accrued interest, and any surplus after such
application(s) shall be released to Metal Tiger.
Material Fees
-- Establishment fee of 3% of the facility, payable on first drawdown.
-- A bonus return interest fee (BRIF), payable on the first anniversary of
the agreement and on any later termination date if the 30-day VWAP of
Sandfire shares at such time exceeds A5.28 per share (Reference Price),
subject to certain adjustment mechanisms. The BRIF is equal to 10% of the
difference between the 30-day VWAP and the Reference Price, multiplied by
the number of Sandfire shares which are security for the Margin Lending
and Drawdown Facility (provided such number is not less than 5,012,626
shares).
-- Including all interest payments under the Margin Lending and Drawdown
Facility and the abovementioned fees, total amounts payable under
agreement must be no less than the greater of:
-- A$2,362,814; and
-- an internal rate of return of 17% on the Lender's investment,
calculated in accordance with the terms of the agreement.
-- 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.
From 16 December 2022, Metal Tiger will be interested in
6,180,168 Sandfire shares, representing approximately 1.39% of
Sandfire's issued share capital. From 16 December, only 1,167,542
Sandfire shares will be secured under the equity derivative
financing arrangement with a global investment bank.
Michael McNeilly, Chief Executive Officer, commented:
"I would like to thank the team, and particularly our CFO and
Co-Sec Adrian Bock, for their tremendous effort in delivering this
facility. This facility offers us flexibility on the loans
outstanding against the 1,167,542 shares under the equity
derivative financing arrangement, giving the Company the option to
pay off the loan assuming the strike is above the put and below the
call, allowing for an effective put entry price into the Sandfire
Shares under the various collars.
In addition, we will now be able to time an entrance to acquire
additional Sandfire shares subject to price movements, dramatically
increasing the overall liquidity available to Metal Tiger allowing
the Company to buffer downside risk and maintain exposure to
potential upside in Sandfire as it brings the Motheo copper mine
into production next year."
This announcement contains inside information as defined in
Article 7 of the EU Market Abuse Regulation No 596/2014 (as it
forms part of United Kingdom domestic law by virtue of the European
Union (Withdrawal) Act 2018) 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:
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
Steve Douglas Arden Partners plc (Broker) Tel: +44 (0)20 7614 5900
Simon Johnson
Gordon Poole Camarco (Financial PR) Tel: +44 (0)20 3757 4980
Elfie Kent
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 companies 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.
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.
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.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20221213005939/en/
CONTACT:
Metal Tiger plc
SOURCE: Metal Tiger plc
Copyright Business Wire 2022
(END) Dow Jones Newswires
December 14, 2022 02:00 ET (07:00 GMT)
Metal Tiger (LSE:MTR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Metal Tiger (LSE:MTR)
Historical Stock Chart
From Jul 2023 to Jul 2024