Metal Tiger plc
(“Metal Tiger” or the “Company”)
Kalahari Metals Limited – Earn-in Agreement Doubles Exploration Landholding
Metal Tiger plc (AIM:MTR), the London Stock Exchange AIM listed investor in strategic natural resource opportunities, is pleased to provide an update further to its announcement of 20 August 2018 regarding its Kalahari Metals Limited (“KML”) joint venture in Botswana.
- Further to the announcement of 20 August 2018, KML has now completed due diligence and entered into an earn-in agreement with Resource Exploration and Development Ltd (“RED”) (the “Agreement”) to acquire an interest in five recently granted exploration licences (the “RED Licences”), with a total area of 4,661km2, in the highly prospective Kalahari Copper Belt
Pursuant to the Agreement, KML
- will acquire up to 25% of Kitlanya Ltd (“Kitlanya”), RED’s wholly owned subsidiary that holds the RED Licences for an immediate cash investment of US$100,000
has the option to acquire the remaining 75% of Kitlanya by way of
an issue of KML shares at a value of US$700,000
- the number of KML shares to be issued will be determined at the time of issue and will be dependent on, inter alia, the valuation of KML at that time
- The Agreement more than doubles KML’s exploration interests from 4,063km2 to 8,724km2
The RED Licences form two contiguous groups
- Kitlanya East, consists of three licences located immediately south of MOD Resources Limited’s T3 Deposit and Cupric Canyon Capital’s Chalcocite Zone deposit
- Kitlanya West, consists of two licences located along strike of KML’s Ngwako Copper Project and abuts the Namibian border on the northern limb of the Kalahari copper belt
- Kitlanya East will target mineralised redox boundaries proximal to basin boundaries and basement horst blocks which are interpreted to extend through the project area. Soil cover is thin and a first phase soil sampling programme is scheduled to commence immediately
- Kitlanya West has the potential for copper related to structural domes interpreted from historical airborne electromagnetic (“AEM”) geophysics survey data. These domes will be similar targets to those providing exciting copper intersections in the MTR/MOD joint venture areas
- Regional AEM geophysics test lines are planned to be flown over the PL070-072/2017 Kitlanya East permits during the initial soil sampling programme in order to help identify drilling targets for 2019
Michael McNeilly, Chief Executive Officer of Metal Tiger plc, commented:
“We are pleased to announce the agreement to significantly increase KML’s exploration interests in Botswana.
The earn-in agreement between KML and RED substantially increases Metal Tiger’s exposure to highly prospective ground within the Kalahari Copper Belt, which across the separate KML and MOD joint ventures covers an area of around 16,000km2, an equivalent area to over three quarters the size of Wales.
With the regional soil sampling programme due to commence immediately over Kitlanya East, and airborne geophysics being planned, we look forward to keeping shareholders updated on KML’s progress. We commend our KML partners for securing this deal.”
Following the Agreement, KML now holds interests in 12 highly prospective exploration licences covering a total area of 8,724km2 in the Kalahari Copper Belt, consisting of two 100% owned exploration licences, five exploration licences subject to a binding earn-in agreement with Triprop Holdings (Pty) Limited (“Triprop”) and five exploration licences subject to the Agreement. Under an investment agreement, announced on 6 June 2018, MTR has the right to acquire up to 50% of KML, providing MTR with further exposure to largely unexplored area, adjacent to significant recent discoveries in the highly prospective Kalahari Copper Belt.
Competent Person’s Statement
The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MAusIMM, FGS), who is a qualified geologist who acts as the Competent Person under the AIM Rules - Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Metal Tiger PLC to provide technical support.
For further information on the Company, visit: www.metaltigerplc.com:
|Michael McNeilly||(Chief Executive Officer)||Tel: +44 (0)20 7099 0738|
|Mark Potter||(Chief Investment Officer)|
|Strand Hanson Limited (Nominated Adviser)||Tel +44 (0)20 7409 3494|
|Nick Emerson||SI Capital (Broker)||Tel: +44 (0)1483 413 500|
|Camarco (Financial PR)||Tel: +44 (0)20 3757 4980|
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 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. The Company’s key strategic objective is to ensure the distribution to shareholders of major returns achieved from disposals. Metal Tiger has two investment divisions, Direct Equities and Direct Projects.
The Direct Equities division invests in undervalued natural resource companies listed on AIM, the ASX and the TSX. Through the trading of equities and warrants, Metal Tiger seeks to generate cash for investment in the Direct Projects division.
Metal Tiger’s Direct Projects division is focused on the development of its key project interests in Botswana, Spain and Thailand. In Botswana, Metal Tiger, through its 12.5% interest in MOD Resources Limited and related JV, has a growing interest in the large and highly prospective Kalahari copper/silver belt. In Spain, the Company has tungsten and gold interests in the highly mineralised Extremadura region. In Thailand, Metal Tiger has interests in two potentially near-production stage lead/zinc/silver mines as well as licences, applications and critical historical data covering antimony, copper, gold, lead, zinc and silver opportunities.
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.