LONDON--(BUSINESS WIRE)--
31 May 2019
Metal Tiger plc
(“Metal Tiger” or the “Company”)
Further investment of US$1.1m in Kalahari Metals Limited
Metal Tiger plc (AIM:MTR), the London Stock Exchange AIM listed investor in strategic natural resource opportunities, is pleased to announce a further US$1.1m equity investment into Botswana focused explorer, Kalahari Metals Limited (“KML”), in which Metal Tiger currently owns 50% of the issued share capital. The investment will be satisfied from existing cash resources.
The additional US$1.1m investment will provide full funding for KML to complete its planned first round drilling at both the Ngami Copper Project and the Okavango Copper Project, as announced on 23 May 2019. The cutting of access tracks for the 2,100m diamond drill programme started, on schedule, on 27 May 2019 with mobilisation of drill rigs planned in the next week.
Further to this investment, Metal Tiger will be issued with further shares in KML such that its interest will increase to 59.81% of KML however, this will reduce to 53.17% upon completion of KML’s purchase of Kitlanya Limited (“Kitlanya”), as announced on 10 April 2019. The acquisition of Kitlanya by KML is conditional on change of control consent being obtained in Botswana. Notwithstanding Metal Tiger's majority shareholding in KML following this investment, KML does not fall to be treated as a subsidiary of Metal Tiger as an agreement between the shareholders of KML precludes Metal Tiger from exercising control.
Michael McNeilly, Chief Executive Officer of Metal Tiger, commented:
“We are delighted that KML is now fully funded to commence the first round of drilling at the Ngami and Okavango Copper Projects and we look forward to initial drill results. This additional funding will also allow KML to plan further work programs over its licence holdings and we will make further updates in due course. The Kalahari Copper Belt is highly prospective and we are confident that continued exploration work in the region will potentially result in new, exciting copper discoveries.”
Project Background
KML, which was incorporated in England & Wales on 3 May 2017, holds interests in 12 highly prospective exploration licences covering a total area of 8,595km2 in the Kalahari Copper Belt, consisting of two 100% owned exploration licences (consisting of the Ngami Copper Project and the Okavango Copper Project), five exploration licences subject to a binding earn-in agreement with Triprop Holdings (Pty) Limited and five exploration licences held by Kitlanya and which are subject to an agreement with Resource Exploration and Development Ltd (“RED”).
As announced on 10 April 2019, KML has entered into a binding agreement with RED to purchase 100% of Kitlanya, which is conditional upon approval of the change of control of Kitlanya being granted by the authorities in Botswana and receipt of an updated letter of good standing for the licences. On completion of the acquisition, the previous earn-in agreement between RED and KML will terminate.
The net assets and net loss of KML incorporated into the Group’s results for the year ended 31 December 2018 were £796,000 and £73,000 (loss) respectively.
For further information on the Company, visit: www.metaltigerplc.com:
| Enquiries: | |||||
| Michael McNeilly | (Chief Executive Officer) | Tel: +44 (0)20 7099 0738 | |||
| Mark Potter | (Chief Investment Officer) | ||||
| Richard Tulloch | Strand Hanson Limited | Tel: +44 (0)20 7409 3494 | |||
| James Dance | (Nominated Advisor) | ||||
| Jack Botros | |||||
| Nick Emerson | SI Capital Limited | Tel: +44 (0)1483 413 500 | |||
| (Joint Broker) | |||||
| Paul Shackleton | Arden Partners plc | Tel: +44 (0)20 7614 5900 | |||
| Steve Douglas | (Joint Broker) | ||||
| Gordon Poole | Camarco | Tel: +44 (0)20 3757 4980 | |||
| James Crothers | (Financial PR) | ||||
| Monique Perks |
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, which includes its 10.48% interest in MOD Resources Limited (“MOD”). 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 JV with MOD and its interest in Kalahari Metals Limited, 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.