Kalahari Metals Limited Acquisition of Kitlanya Ltd
Kalahari Metals Limited Acquisition of Kitlanya Ltd
Metal Tiger plc
("Metal Tiger" or the "Company")
Kalahari Metals Limited – Acquisition of Kitlanya Ltd
Metal Tiger plc (LON:MTR), the London Stock Exchange AIM listed investor in strategic natural resource opportunities, is pleased to announce that Kalahari Metals Limited (“KML”), in which Metal Tiger owns 50% of the issued share capital, has entered into a binding agreement with Resource Exploration and Development Limited (“RED”), to purchase 100% of Kitlanya Ltd (“Kitlanya”) (together with KML, the “Parties”) (the “Acquisition”).Post completion of the Acquisition, Metal Tiger’s interest in KML will be diluted to approximately 43.9%.
Kitlanya is a 100% subsidiary of RED and was previously subject to an Earn-in Agreement between the Parties (as announced on 30 November 2018). The Parties have now agreed to terminate the Earn-in Agreement and have executed a conditional Share Purchase Agreement on similar terms. KML has completed US$100,000 of exploration works on the licences held by Kitlanya and will acquire 100% of Kitlanya for US$700,000, satisfied by the issue of shares representing approximately 13.4% of KML as enlarged by the Acquisition. The transaction will value KML, post completion of the Acquisition, at US$5,200,000.
The Kitlanya licences comprise five recently granted exploration licences and cover approximately 4,651km2 of well-located exploration tenure in the prospective Kalahari Copper Belt. The Acquisition will increase KML’s direct land position in the Kalahari Copper Belt to approximately 8,594km2.
The Acquisition 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. Further announcements will be made in due course.
The five licences have been divided into two project areas, namely Kitlanya West (“KIT-W”) and Kitlanya East (“KIT-E”):
• KIT-E is notable for its thin Kalahari Group cover and proximity to known deposits such as MOD Resources’ T3 deposit. Targets include prospective anticlinal hinge zones identified from re- interpretation of historical magnetic data and drilling combined with recently collected airborne electromagnetic data (“AEM”) and soil samples
• KIT-W is situated adjacent to KML’s Ngami Copper Project in proximity to the basin margin. Re-processing and inversion of historical AEM data has identified three prominent conductive ‘dome’ targets for follow-up work
• Applications for environmental permits have been submitted to the Botswana Department of Environmental Affairs for both KIT-W and KIT-E, with a view to drill testing targets in the latter part of the 2019 field season
Metal Tiger intends to provide further funding to KML to support its drilling in Q2 2019 and further announcements will be made as and when appropriate.
Michael McNeilly, Chief Executive Officer of Metal Tiger, commented:
“We are delighted that KML has reached an agreement to acquire Kitlanya, which will consolidate its highly prospective exploration interests in the Kalahari Copper Belt.We intend to demonstrate our continued support for KML and its activities in Botswana through the provision of further funding in due course.”
KML 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, and five exploration licences subject to a conditional Acquisition agreement with RED.
Under an investment agreement, announced on 6 June 2018, Metal Tiger owns 50% of KML, providing Metal Tiger with further exposure to a 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 and 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)|
| Richard Tulloch
|Strand Hanson Limited (Nominated Adviser)||Tel +44 (0)20 7409 3494|
|Nick Emerson||SI Capital (Broker)||Tel: +44 (0)1483 413 500|
| Gordon Poole
|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 10.48% interest in MOD Resources Limited and related JV, and its 50% 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.
Metal Tiger plc