("Metal Tiger" or the "Company")
As part of the Investment, Metal Tiger has been conditionally granted a 2% net smelter royalty over all of KML’s wholly owned licences, being seven licences covering, in aggregate, 6,650km2 (together, the “Royalties”). The five exploration licences owned by
The Royalties will fall away should Metal Tiger invest a further amount at a lower valuation than the Investment, subject to a cap of
KML will utilise the proceeds of the Investment to fund exploration drilling programmes at the Kitlanya East (‘KIT-E’),
Environmental approvals are now in place for drilling on all of KML’s projects. Drilling and soil sampling programmes are planned to start at KIT-E in
“This investment will allow the KML team to progress exploration and prove up other targets at KIT-E, Kit-W and OCP, and also increases Metal Tiger’s exposure to the highly prospective Kalahari Copper Belt, which currently includes our interest in KML, as well as in Sandfire’s
“In the context of our expectation of an increasing global requirement for copper production, and therefore exploration, we expect the Kalahari Copper Belt to become an increasingly more valuable area to be situated and are delighted to increase our interest in the area.”
Drilling at KIT-E will initially consist of four scout diamond holes, which will target fold hinge structures identified in a recently completed detailed airborne electromagnetic (‘AEM’) survey, which may represent carbonaceous marker units in the lower D’Kar formation (‘DKF’) above the contact with the underlying Ngwako Pan formation (‘NPF’). This contact is host to the bulk of identified Cu-Ag mineralisation in the Kalahari Copper Belt. Intersection of the prospective DKF-NPF contact will significantly upgrade the potential for discovery of exploitable mineralisation on this project. Further sampling and a more extensive reverse circulation (‘RC’) drilling programme are expected to be initiated after assessment of results from the diamond drilling. It is worth noting that Sandfire’s
Soil sampling traverses are planned over additional anticlinal targets, where Cu-Ag mineralisation may be upgraded. Results from the soil sampling are expected to assist in advancing these targets for geophysical follow-up and drill testing.
Recently completed drilling at OCP has demonstrated the effectiveness of targeting the prospective DKF-NPF contact using AEM modelling as a stratigraphic guide. Further diamond drilling is planned to target extensions of the contact from Cupric Canyon’s Zone 5 and Zone 5 north deposits after completion of the KIT-E drill programme.
Assays are still awaited from the previous drill programme.
AEM surveys have identified three prominent conductors located in fold hinge zones interpreted from magnetic data providing possible analogues to Sandfire Resources T3 deposit. In addition to testing for mineralisation, drilling these targets will provide important stratigraphic information for the project area. Diamond drilling is planned at KIT-W after completion of target drilling on OCP.
KML, which was incorporated in
Notwithstanding Metal Tiger's majority shareholding in KML, 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.
The net assets and net loss of KML incorporated into the Group’s results for the year ended
Registered licence holder
Link to Figure 1: Map of licences subject to the Royalties
This announcement contains inside information for the purposes of the market abuse regulation (EU No. 596/2014) (“MAR”).
For further information on the Company, visit: www.metaltigerplc.com:
(Chief Executive Officer)
Tel: +44 (0)20 7099 0738
(Chief Investment Officer)
Tel +44 (0)20 7409 3494
Arden Partners plc (Broker)
Tel: +44 (0)20 7614 5900
Camarco (Financial PR)
Tel: +44 (0)20 3757 4980
Notes to Editors:
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. Metal Tiger has two investment divisions:
The Direct Equities Division invests in undervalued natural resource companies. The majority of its investments are listed on AIM, the TSX and the ASX, which includes its 3.5% interest in
The Direct Projects Division is focused on the development of its key project interests in
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.