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Metal Tiger Fundraising closes on £6.2 million

Metal Tiger Fundraising closes on £6.2 million

Friday, 31 August, 2018

Metal Tiger Plc

("Metal Tiger" or the "Company")

Metal Tiger Fundraising closes on £6.2 million, including £2.6 million from the Sprott Offering

Metal Tiger (LON:MTR), the natural resources investing company, is pleased to announce that, further to the announcement on 6 August 2018, the Sprott Offering has closed oversubscribed, raising gross proceeds for the Company of approximately £2.6 million.

In aggregate, the Company has raised total gross proceeds of £6.132 million from the Sprott Offering and the Placing announced on 6 August 2018 (together, the “Fundraising”). This represents the largest fundraise by the Company to date.

The proceeds of the Fundraising will be used to fund Metal Tiger’s portion of its commitment to 2018 budget for its Joint Venture project with partners MOD Resources Limited (ASX:MOD) (“MOD”) in the Kalahari Copper Belt in Botswana (30% Metal Tiger / 70% MOD Resources), for its commitment to its recently acquired Joint Venture with Kalahari Metals Limited (“KML”) in the same region, as well as for working capital and general corporate purposes.

Highlights of the Sprott Offering:

  • Issue of 93,425,714 new ordinary shares in Metal Tiger at a subscription price of 2.8p per ordinary share (the “Placing Shares”) raising gross proceeds of £2,615,920;
  • Issue of 93,425,714 warrants to subscribe for 93,425,714 new ordinary shares in Metal Tiger at an exercise price of 5p per warrant, within a 3 year exercise period (“Warrants”);
  • Placing undertaken with new and existing Metal Tiger shareholders;
  • Funding to augment existing underlying working capital underpinning the Company’s joint ventures in its Metal Projects division, with a specific focus on the Company’s Botswanan exploration projects; and
  • Sprott Capital Partners, a division of Sprott Private Wealth LP and Sprott Global Resource Investments, Ltd. were engaged as finders to Metal Tiger in the Sprott Offering.

In addition, the Company has accepted a further subscription for new shares from a London based investor of £15,000 on the same terms as the Placing (“Further Subscription”).

The 93,425,714 new ordinary shares to be issued pursuant to the Sprott Placing and the Further Subscription are expected to be admitted to trading on AIM on or around 6 September 2018. Exploration Capital Partners has participated for 37,395,942 new ordinary shares bringing its total holding post issue to 137,395,942 ordinary shares representing circa 10.18% of the issued share capital of the Company.

Following the issue of the new ordinary shares, the number of ordinary shares in issue in the Company will increase to 1,349,956,065. For the purposes of the Financial Conduct Authority's Disclosure and Transparency Rules ("DTRs"), the issued ordinary share capital of Metal Tiger following this allotment consists of 1,349,956,065 ordinary shares with voting rights attached (one vote per share). There are no shares held in treasury. This total voting rights figure may be used by shareholders as the denominator for the calculation by which they will determine whether they are required to notify their interest in, or a change to their interest in, Metal Tiger under the DTRs.

Unless otherwise defined, all capitalised terms in this announcement have the meaning given to them in the announcement made by the Company on 6 August 2018.

Michael McNeilly Chief Executive Officer of Metal Tiger commented:

“The Board and I are extremely pleased to have raised an additional £2.6m from the Sprott Offering raising more than double the minimum commitment from Sprott. This brings the total amount raised on the same terms to circa £6.13m. This fundraise is the single largest investment in Metal Tiger to date and was done at a price which was significantly higher than MTR’s average price over the course of 2018.

The continued institutional support along with the support from London means that Metal Tiger is now exceptionally well positioned to advance its many investments, in particular, its Joint Venture with MOD Resources and its investment Kalahari Metals. We believe that there is significant upside in exploration in the Kalahari Copperbelt and we believe MTR is uniquely positioned to benefit from any future exploration success”

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

Michael McNeilly   Chief Executive Officer

(Metal Tiger plc)

  Tel: +44 (0)20 7099 0738
Mark Potter Chief Investment Officer

(Metal Tiger plc)

Tel: +44 (0)20 7099 0738
Stephen Allen
Bhavesh Patel
RFC Ambrian Ltd
(Nominated Adviser)
Tel: +44 (0)20 3440 6800
Charlie Cryer RFC Ambrian Ltd
(Joint Broker)
Tel: +44 (0)20 3440 6800
Nick Emerson SI Capital
(Joint Broker)
Tel: +44 (0)1483 413 500

Gordon Poole

James Crothers

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 London’s AIM, the ASX and the TSX. Through the trading of equities and warrants, Metal Tiger seeks to generate cash for investment in the Metal 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 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 silver/lead/zinc mines as well as licences, applications and critical historical data covering antimony, copper, gold, silver, lead and zinc opportunities. The Company actively assesses new investment opportunities on an ongoing basis and has access to a diverse pipeline of new opportunities in the natural resources and mining sector. 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.

The securities described in this announcement have not been and will not be registered under the United States Securities Act of 1933 (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration is available.

Metal Tiger plc