Strategic Investment in Kolar Gold

LONDON--()--

Metal Tiger Plc

12 July 2016

Metal Tiger Plc

("Metal Tiger" or the "Company")

STRATEGIC INVESTMENT IN KOLAR GOLD

Metal Tiger plc (LON:MTR) the London Stock Exchange AIM listed investor in strategic natural resource projects is pleased to announce that the Company is to make a strategic investment in Kolar Gold Limited (LON: KGLD) (“Kolar Gold”) which will see Kolar Gold with a restructured board of directors.

Highlights:

  • Transaction subject to Kolar Gold shareholder approval at Extraordinary General Meeting to be held on 27 July 2016;
  • Metal Tiger to invest £200,000 in cash to acquire 18,181,818 shares in Kolar Gold at a price of 1.1p per new ordinary share and equating to circa 9.4% of Kolar Gold shares in issue post placing;
  • Metal Tiger to also receive 18,181,818 warrants to acquire new ordinary shares in Kolar Gold at an exercise price of 2.2p per new ordinary share exercisable at any time within 30 months of the placing shares being admitted to trading;
  • Metal Tiger has entered into an option agreement for a fee of US$25,000 to acquire a further 9,000,000 existing Kolar Gold shares from its current largest shareholder, at a price of 3.5p per share exercisable on or before 7 March 2017. It is at Metal Tiger’s sole discretion to choose if it wants to exercise the option;
  • Board restructuring to take place at Kolar Gold – Metal Tiger’s inaugural CEO Cameron Parry, to step down from the board of Metal Tiger to take up the position of CEO of Kolar Gold, subject to the passing of the resolutions at the Kolar Gold GM to be held on 27 July 2016. Luke Cairns to join as the other Executive Director of Kolar Gold. Harvinder Hungin to remain Non-Executive Chairman, Steven Oke to remain Non-Executive Director and Vaidyanathan Sivakumar to step down as Non-executive director; and
  • New board of Kolar Gold to launch an immediate operational review covering existing exploration interests and various pipeline acquisition opportunities that may be suitable for the Kolar Gold business.

Paul Johnson, Chief Executive Officer of Metal Tiger plc commented “We are delighted to announce the investment in Kolar Gold which exposes Metal Tiger shareholders to equity and warrant upside in a clean resource operating company at a modest valuation given the recent resource sector apathy in the markets.

I can also confirm that Metal Tiger’s creator and former CEO, Cameron Parry, is stepping down from Metal Tiger’s board upon completion of the transaction to commit his drive and ability to generate shareholder value to a new vehicle. We accept this is necessary and whilst Cameron will continue to provide Metal Tiger with his input as a strategic consultant, I’d like to take this opportunity to thank Cameron for establishing Metal Tiger and helping to generate the tremendous value Metal Tiger has delivered for shareholders.

With Cameron and new executive director Luke Cairns taking on the management of Kolar Gold, we are confident that Kolar Gold will keenly utilise its new managerial and financial resources to rapidly build shareholder value by maximizing its current project interests in India, whilst identifying new complementary opportunities to refresh the business model and reinvigorate the Company and its investors.

We are hugely excited by the opportunity afforded by our investment and Cameron’s involvement in Kolar Gold and we look forward to updating investors further on transaction completion.”

Kolar Gold reported a loss before tax of £1,254,716 for the year ended 30.06.15 and unaudited net assets of £3,701,713 as at 31.12.15.

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

Paul Johnson (Chief Executive Officer)     Tel: +44 (0)7766 465 617
Terry Grammer (Non- Executive Chairman) Tel: +44 (0)207 099 0738
Sean Wyndham-Quin

Neil Baldwin

Nick Emerson

Andy Thacker

Spark Advisory Partners Limited

(Nominated Adviser)

SI Capital

(Sole Broker)

Tel: +44 (0) 2033 683 555

 

www.sparkadvisorypartners.com

Tel: +44 (0) 1483 413 500

Notes to Editors:

Metal Tiger plc is listed on the London Stock Exchange AIM Market (“AIM”) with the trading code MTR and invests in high potential mineral projects with a precious and strategic metals focus.

The Company’s target is to deliver a very high return for shareholders by investing in significantly undervalued and/or high potential opportunities in the mineral exploration and development sector timed to coincide, where possible, with a cyclical recovery in the exploration and mining markets. The Company’s key strategic objective is to ensure the distribution to shareholders of major returns achieved from disposals.

Metal Tiger’s Metal Projects Division is focused on the development of its key project interests in Botswana, Spain and Thailand. In Botswana Metal Tiger has a growing interest in the large and highly prospective Kalahari copper/silver belt. In Spain Metal Tiger the Company has tungsten and gold interests in the highly mineralised Extremadura region. In Thailand Metal Tiger has expanding interests over licences, applications and critical historical data covering antimony, copper, gold, silver, lead and zinc opportunities.

The Company has access to a diverse pipeline of new opportunities focused on the natural resource sector including physical resource projects, new natural resource centred technologies and resource sector related fintech opportunities. Pipeline projects deemed commercially may be undertaken by Metal Tiger or by an ISDX or AIM partner with whom the Company is engaged.

Metal Tiger also has an Asset Trading Division that holds various financial instruments for trading purposes including equities, warrants and royalty income. The aim of the division is to generate profits to reinvest into the Company’s project based activities.

As the resource sector moves solidly into the recovery phase opportunities exist for Metal Tiger to take a more proactive role within its investments, something that can be seen occurring in MetalNRG (ISDX:ZIMO) and Greatland Gold plc (LON:GGP). Further participatory financing transactions are planned, to build the network and presence of the Metal Tiger business ethos and to create investments capable through capital growth in material augmenting metal Tiger’s underlying working capital.

Note: This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation.

Short Name: Metal Tiger plc
Category Code: MSCH
Sequence Number: 536522
Time of Receipt (offset from UTC): 20160711T230832+0100

Contacts

Metal Tiger plc

Contacts

Metal Tiger plc