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Thailand Gold Prospects - Joint Venture Agreement

RNS Number : 4832V
Metal Tiger PLC
28 October 2014
 



Metal Tiger plc

("Metal Tiger" or the "Company")

 

Thailand Gold Prospects - Joint Venture Agreement Signed

 

In line with the Company's investing policy and the Memorandum of Understanding ("MOU") announced on 31 July 2014, Metal Tiger is pleased to announce that on 27 October 2014 it entered into a Joint Venture Agreement ("JVA") with Thailand-based South East Asia Exploration and Mining Company Limited ("SEAM") and Southeast Asia Mining Corp. - the parent company of SEAM.  This formalises Metal Tiger's opportunity to progress and potentially control gold exploration targets in two of Thailand's gold regions.  Subject to the Company triggering certain staged milestones over the next 20 months, Metal Tiger has the ability to acquire a 75% joint venture stake in the projects.

 

Metal Tiger's CEO, Cameron Parry, commented: "Having formalised the JVA, it is exciting to start implementing our plans for these sites located in the 'Copper-Gold Belt' and 'Gold-Antimony Belt' regions of Thailand.  We believe these targets have good commercial potential and the joint venture agreement represents a significant step for Metal Tiger in developing its presence in Southeast Asia."

 

Key Terms of the Joint Venture Agreement

 

Subject to achievement of milestones that are satisfactory to Metal Tiger, a total consideration of US$150,000 in cash is payable by Metal Tiger to SEAM for Metal Tiger to ultimately acquire a 75% joint venture stake in the gold prospective properties the subject of the JVA, as follows :

 

·     US$10,000 in respect of the initial 90 day due diligence exclusivity period (which was paid to SEAM upon the signing of  the MOU on 30 July 2014);

·     US$15,000 payable to SEAM upon signing the JVA, following which SEAM shall  incorporate two new Thai subsidiary companies for the purpose of the joint venture and shall seek to secure second priority applications on the JVA areas, where licence applications are currently held by SEAM, in the name of the respective new joint venture companies;

·     US$50,000 payable to SEAM on or before 29 January 2015, subject to SEAM completing the above to the satisfaction of Metal Tiger. Following this payment being made, SEAM shall promptly withdraw its licence applications over the JVA areas thereby changing the joint venture companies' licence applications to first ranking priority; and

·     US$75,000 payable to SEAM on or before 29 July 2016.

 

In addition, under the JVA Metal Tiger has entered into a commitment to pay the initial  US$150,000 in qualifying expenditure (being costs related to joint venture company maintenance, advancing licence applications and exploration activities) as part of its requirements to acquire its 75% joint venture stake, as follows :

 

·     US$30,000 payable to the new joint venture companies for maintenance and permitting costs under the JVA, following the incorporation of the new joint venture companies;

·     US$20,000 payable to the joint venture companies, upon evidence they hold first priority applications on the JVA areas, for joint venture company maintenance costs; and

·     US$100,000 payable by Metal Tiger, either directly or via the joint venture companies, to be applied to permitting and exploration costs under the JVA.

 

The joint venture between Metal Tiger and SEAM shall operate on a 75% : 25% basis subject to  completion of all of the above conditions and milestones.  Should Metal Tiger choose to complete all stages of the JVA, the Company would need to raise further funds at the appropriate time in order to meet all of the above commitments in full and the Company continues to consider its options in this regard.  Should Metal Tiger choose not to proceed at any juncture prior to acquiring its 75% stake, SEAM shall retain all earlier payments made to it, and the joint venture assets (if any) shall be realised and distributed: (i) the first US$5,000 (or part thereof) to SEAM; and (ii) the balance of funds to Metal Tiger.

 

Joint Venture Areas

 

As previously announced the sites the subject of the JVA are as follows:

 

2 SPLAs ("Special Prospecting Licence Applications") covering a total area of 31km2 relating to projects in the Nakon Sawan and Lopburi provinces within the Loei-Phetchabun part of what is locally referred to as the 'Copper-Gold Belt'.  These sites in central Thailand which are the subject of the two respective SPLAs are currently anticipated to obtain exploration approval in the second half of 2015.

 

2 applications covering a total area of 208 hectares in the Chanthaburi province, in the South East of Thailand, currently covered by historical applications held by SEAM.  The properties are located in the area locally known as the 'Gold-Antimony Belt'.  It is anticipated exploration licence approval can be obtained in late 2015.

 

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

 

Cameron Parry

(CEO)

 

 

Tel: +44 (0)207 099 0738

Paul Johnson

(Non-Executive Director)

 

 

Tel: +44 (0)7766 465 617

Nick Athanas

Alex Price

 

Allenby Capital Limited

(Nominated Adviser and Joint Broker)

Tel: +44 (0) 20 3328 5656

Lucy Williams

Duncan Vasey

 

Peterhouse Corporate Finance

(Joint Broker)

Tel: +44 (0) 20 7469 0935

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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