(“Metal Tiger” or the “Company”)
Completion of Further Financing Arrangement
The Further Financing Arrangement is secured over, in aggregate, 328,798 Sandfire Shares held by Metal Tiger, representing approximately 0.18% of Sandfire’s issued share capital.
Under the terms of the Further Financing Agreement Metal Tiger has:
- entered into a stock lending arrangement with the Lender, pursuant to which the Lender (or an affiliate of the Lender) can borrow up to, in aggregate, 328,798 Sandfire Shares from Metal Tiger;
- obtained the right (but not the obligation) to sell 63,045 and/or 265,753 Sandfire Shares to the Lender in three years’ time at 80% of the reference price, being
A$4.40and A$4.45respectively (subject to customary adjustments) (the “Reference Prices”) (each a “Put”);
- granted the Lender the right (but not the obligation) to buy 63,045 and/or 265,753 Sandfire Shares from Metal Tiger in three years’ time at an agreed premium of 145% of the respective Reference Price (each a “Call”); and
- borrowed, in aggregate,
A$1,168,000from the Lender secured on the combination of the above with a maturity date of 18 May 2023(the “Further Loan”).
Metal Tiger has the right to elect to settle the Put and the Call by way of physical delivery of Sandfire Shares or by way of a cash payment reflecting the value of the respective Put and Call at the time.
Costs of approximately
- A near term substantial investment opportunity; and
- Other potential investment opportunities.
Metal Tiger can agree with the Lender to utilise the balance of Sandfire Shares held by it to increase the size of the financing arrangement at a later date. Following the Further Financing Arrangement, and together with the initial financing arrangement of
The Further Financing Arrangement and the Initial Financing Arrangement, are secured over, in aggregate, 2,003,923 Sandfire Shares held by Metal Tiger, representing approximately 1.125% of Sandfire’s issued share capital. Metal Tiger currently holds 6,366,990 Sandfire Shares.
Unless otherwise defined in this announcement, capitalised terms shall have the same meanings as set out in the announcement of
Commenting on today’s financing arrangements, Mr
“Recognising the recent rise in Sandfire’s share price, the Board has taken the proactive step of seeking to raise further funds through the existing Umbrella Facility, in order to have the flexibility to pursue high potential opportunities in current market conditions that the Board believes have the potential to outperform over the period of the financing arrangement. We look forward to providing shareholders updates on future investments opportunities as appropriate.”
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 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.