Further Equity Investment in Ariana Resource

RNS Number : 8798R
Metal Tiger PLC
01 July 2015
 

METAL TIGER PLC

1 July 2015

 



Metal Tiger plc

("Metal Tiger" or the "Company")

 

Further Equity Investment in Ariana Resources

 

Metal Tiger (LON: MTR), the natural resources investing company is pleased to announce a further Direct Equity investment in Ariana Resources plc ("Ariana") (LON:AAU).

 

Highlights:

 

  • On 30 June 2015 Metal Tiger exercised its option to invest an additional £75,000 in Ariana Resources plc at 0.9p per share to acquire a further 8,333,333 shares;
  • Metal Tiger is to receive 8,333,333 warrants to subscribe for new ordinary shares in Ariana Resources plc at 1.8p per share with a three year exercise period;
  • This additional tranche brings the total Metal Tiger 2015 investment in Ariana Resources to £250,000, to date.

 

Metal Tiger's CEO Cameron Parry commented:  "Metal Tiger is delighted to confirm the exercise of its option to invest a further £75,000 in Ariana Resources bringing the total invested in Ariana to £250,000 to date.

 

Our original investment in Ariana was announced on 5 February 2015 and since that time Ariana has made significant progress technically and operationally.  Recent notable achievements of Ariana include receipt of forestry permits allowing commencement of construction of their gold production plant at Kiziltepe and production of a Scoping Study demonstrating the prospective value of their Salinbas/Ardala interests in North Eastern Turkey.  

 

The progress made has, in the view of Metal Tiger, brought Ariana to a highly important point of development and whilst the market appears to be beginning to recognise Ariana's value, Metal Tiger considers that going forward its exposure to Ariana has the potential to deliver substantial returns."

 

Investment in Ariana Resources - summary

 

5 February 2015

 

Metal Tiger previously announced a Direct Equity Subscription by the Company into Ariana Resources plc of £75,000 at 0.9p per share amounting to a purchase of 8,333,333 new ordinary shares in Ariana.  

 

As part of this investment Metal Tiger received 8,333,333 warrants to subscribe for new ordinary shares in Ariana Resources plc at 1.8 per share with an exercise period of 3 years from the subscription date.  Should Ariana dispose of the Salinbas/Ardala project interest for in excess of $15million, the exercise price of any unexercised warrants from this warrant tranche will increase by 50% to 2.7p per share.

 

7 April 2015

 

Metal Tiger announced a further Direct Equity Subscription by the Company into Ariana Resources plc of £100,000 at 0.9p per share amounting to a purchase of 11,111,111 new ordinary shares in Ariana.

 

As part of this investment Metal Tiger received 11,111,111 warrants to subscribe for new ordinary shares in Ariana Resources plc fixed at 1.8p per share with an exercise period of 3 years from the subscription date. 

 

30 June 2015

 

Metal Tiger today announces that the Company has exercised an option to invest a further £75,000 in Ariana Resources through a Direct Equity subscription at 0.9p per share amounting to a purchase of 8,333,333 new ordinary shares in Ariana.

 

As part of this investment Metal Tiger will receive 8,333,333 warrants to subscribe for new ordinary shares in Ariana Resources plc at 1.8p per share with an exercise period of 3 years from the subscription date.  Should Ariana dispose of the Salinbas/Ardala project interest for in excess of $15million, the exercise price of any unexercised warrants from this warrant tranche will increase by 50% to 2.7p per share.

 

Overall Summary

 

In three tranches during 2015 Metal Tiger has therefore invested a total of £250,000 to acquire 27,777,777 shares in Ariana Resources at a price of 0.9p per share. Metal Tiger currently holds 14,444,444 shares in Ariana Resources representing 2.2% of the issued share capital prior to the addition of a further 8,333,333 Ariana shares on the future admission date of shares acquired in this transaction.

 

In addition Metal Tiger currently holds 27,777,777 warrants in Ariana Resources.  11,111,111 of which are exercisable at 1.8p each.  The balance of 16,666,666 warrants are exercisable at an exercise price of 1.8p and In the event that Ariana confirms via an AIM announcement that they have sold their interest in the Salinbas/Ardala project for cash or share consideration in excess of $15million, the price of any un-exercised warrants of the 16,666,666 will increase by 50% to an exercise price of 2.7p per share.

 

Ariana Resources plc reported net assets of £6,476,000 as at 31 December 2014 and a loss for the year ended 31 December 2014 of £1,000,000.

 

Collaboration

 

As announced on 5 February 2015, Metal Tiger and Ariana have agreed to collaborate to identify and consider new resource opportunities in Turkey where both parties may be able to participate.  Most notably both companies are keen to consider new opportunities that may arise in respect of fresh licence auctions taking place in Turkey and the companies are in regular communication in relation to this.

 

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

 

Metal Tiger Plc

 

Cameron Parry (CEO)

Tel: +44 (0)207 099 0738

Paul Johnson (Executive Director)

Tel: +44 (0)7766 465 617

Spark Advisory Partners Limited (Nominated Adviser)

Sean Wyndham-Quin

Neil Baldwin

Tel: +44 (0) 2033 683 555

 

SI Capital (Sole Broker)

Nick Emerson

Andy Thacker

Tel: +44 (0) 1483 413 500

 

 

 

       

Notes to Editors:

 

Metal Tiger Plc is a natural resources focused investing company quoted on the London Stock Exchange AIM Market ("AIM") with the trading code MTR and two investment divisions, Direct Equities and Direct Projects. 

 

The Direct Equities division invests in quoted natural resource explorers and developers, with a combination of shares and warrants providing a potential non-debt financing instrument and enhanced return potential.

 

The Direct Projects division invests in operational mineral exploration projects with current investments in Spanish Gold & Tungsten, Thai Gold, Copper & Antimony, and Tanzanian Gold and Uranium.  The Direct Projects investment division also has working collaborations to identify new investment opportunities in Russia (platinum focus) and Turkey (gold focus), in association with experienced in-country partners.

 

Metal Tiger'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 timed to coincide where possible, with a cyclical recovery in the exploration and mining markets.


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