Direct Equities

The Direct Equities division encompasses the Company's long-term equity, warrant and royalty investment.  All activities seek to generate cash inflow, in order to mitigate the need for external dilution through share placings.  The gains achieved from the Direct Equities division are re-invested in the Company, its operations and its Metal Projects division.  The Direct Equities division is secondary to the Company’s main mission which is the development of its projects.

Strategic Investments

Larger scale investments made on an active basis are negotiated directly with the board of investee companies.

The cost of investments at 30 June 2017 was £2.6m, which was provided to Conroy Gold & Natural Resources plc (LON: CGNR), Greatland Gold plc (LON:GGP), Goldstone Resources Ltd (LON: GRL), Lionsgold Ltd (LON:LION) (formerly Kolar Gold), Red Rock Resources plc (LON:RRR) and Thor Mining plc (LON:THR) (ASX:THR).  Since 1 July 2017, the Company has exercised all of its warrants in Greatland Gold plc (LON: GGP) and disposed of all of its shareholding in Greatland Gold plc (LON:GGP).

In addition, the Company has invested in its JV partner MOD Resources Ltd (ASX:MOD) and holds 5% of its issued share capital as at 30 June 2017.  Since 1 July 2017, the company has invested further in Kingsgate Consolidated Limited and holds 6.7% of that company's issued share capital.

An outline of Metal Tiger's investment criteria is set out below. 

Direct Equities - Investment Criteria

Metal Tiger plc, through its Direct Equities division, invests in long-term natural resource opportunities with a focus on listed equities, listed equity warrants and production royalties.

Investments are made with a sole focus on capital growth; recognising that the majority of MTR’s acquisitions will be undertaken during the bottoming phase of the resource sector cycle, with the upside being delivered within the general sector recovery phase.

Metal Tiger does not seek to control its investee companies, though it does intend to behave as a judiciously active investor, campaigning for the best approach toward management, structuring, strategy, finance and operations, in order to provide the best prospects of a capital return for all shareholders in the long term.

Each investment decision is considered on its own merits, taking into consideration the specific circumstances relating to the opportunity in question and its potential for value appreciation.

Although not exhaustive, Metal Tiger considers the following list of factors to be important when assessing investment opportunities and considering whether to acquire, hold or dispose of individual investment positions:

  • Suitability of management team, and commitment of management to the advancement of shareholder interests through positive business development;
  • Company attitude and approach to communications and recognition of the importance of properly updating the market with regards to matters of strategy and operational progress;
  • Financial strength of the company demonstrated by existing resources and ability to raise finance on terms that are fair, reasonable and protective of existing shareholders;
  • Appropriateness of long-term corporate strategy and extent to which the company outlines its strategic plans and vision to the market in a coherent, understandable and effective manner;
  • Efficiency of operations and a recognition of the importance of deploying funds in a diligent and focused manner in order to generate a meaningful return on capital.

On Market Portfolio

Smaller scale investments purchased through the Company’s dealing facilities and subject to an investment entry cap of 10% of Metal Tiger’s last reported net assets per investment.

Through the On-Market Portfolio we hold a range of London Stock Exchange AIM resource company shares, and are researching opportunities in the TSX and ASX markets.

Alternative Investments

Investments which can include warrants, royalties and other non-equity interests which we would define as readily tradeable.

We see significant growth opportunities in this category and are currently targeting new investments in this area, particularly the purchase of long term warrants and royalties.

Reporting on Direct Equities is restricted to the half year and full year results, save where the Company is required to announce transactions for regulatory reasons.

Current Warrant Holdings

As at 30 June 2017

Company No. of Warrants Exercise Price Exercise Period Ending

Kibo Mining plc    (LON:KIBO)

 10,000,000

9p

26/02/18

Ariana Resources plc   (LON:AAU)

11,111,111

1.8p

07/04/18

ECR Minerals plc   (LON:ECR)

2,500,000

8p

18/11/18

MOD Resources Limited   (ASX:MOD)

 1,541,667

A$ 0.06

15/04/19

Greatland Gold plc   (LON:GGP)

85,000,000

0.20p

17/05/19

Red Rock Resources plc   (LON:RRR)

 29,761,904

25,000,000

0.84p

0.80p

28/10/18

24/08/18

Conroy Gold & Natural Resources plc    (LON:CGNR) 675,675 37p 04/11/18
Connemara Mining Company plc   (LON:CON)  5,000,000 5p 13/05/18
Thor Mining plc    (LON:THR) (ASX:THR)

7,500,000

1.2p

29/11/18

Lionsgold Limited  (LON:KGLD) 18,181,818 2.2p

29/01/19

Goldstone Resources Ltd  (LON:GRL) 1,000,000 5p

10/08/18

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