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Issue of Equity & Exploration Licence Update

RNS Number : 5341W
Metal Tiger PLC
10 November 2014
 



 

Metal Tiger plc

("Metal Tiger", the "Company" or the "Group")

 

Strategic placement raising £400,000

Spanish exploration licence update

Appointment of broker

Total voting rights

 

Metal Tiger plc (AIM: MTR), the AIM listed natural resources investing company, is pleased to announce that the Company has raised £400,000 (before expenses) through a placing and subscription of 66,666,663 new ordinary shares of 0.01 pence each in the Company (the "Placing Shares") at a price of 0.6 pence per Placing Share (the "Placing Price") from certain investors (the "Placing").  The Placing Price represents a discount of approximately 25 per cent. to the Company's closing mid-market price of 0.8 pence on 7 November 2014, being the last practicable business day prior to the issue of this announcement.

 

Cameron Parry, Chief Executive of Metal Tiger, commented: "Metal Tiger has secured options over what we consider to be attractive opportunities in Thailand and Spain.  The Board recognises the severe conditions in the mineral exploration sector at present and considers it vital to ensure the Company is well funded to drive the interests of the business forward.  We understand shareholders' concerns in relation to dilution, and indeed share them as fellow shareholders, but consider that the value of maintaining the pace of our activities at this time and opportunity for low-cost projects with high value potential outweighs this.  We look forward to updating shareholders in the near future on developments in both projects and other areas of Company activities."

 

The Company intends to use the net proceeds of the Placing to provide additional working capital and in particular to enable further funds to be deployed towards the projects in Thailand and Spain in which Metal Tiger has signed a joint venture agreement and a memorandum of understanding respectively and, in relation to the Spain project, is currently carrying out due diligence.

 

Application will be made for the Placing Shares to be admitted to trading on the AIM market ("Admission") and it is expected that Admission will take place on or around 24 November 2014. The Placing is conditional only upon Admission and has been carried out within the Company's existing share authorities. The Placing Shares will rank pari passu with the existing ordinary shares. Once issued, the Placing Shares will represent 26.6 per cent. of the Company's enlarged issued share capital.

 

Update on exploration licence option agreement in Spain

 

On 9 October 2014 the Company entered into an option arrangement with Qbis Resources S.L. ("Qbis") and Diversified Asset Holdings Pty Ltd ("Diversified") for an exploration licence covering a licensed area (the "Project") in North-West Spain. The Project is prospective for gold, tungsten and tin. Subject to Metal Tiger triggering certain staged option milestones over an 18 month period, Metal Tiger has the ability to acquire an 80% joint venture stake in the Project.

 

Metal Tiger is currently in a 60 day period of exclusivity in order to complete its due diligence and finalise a formal joint venture agreement with Qbis and Diversified.

 

The exploration licence covers an area of 2,987 hectares surrounding the town of Navasfrias in the Salamanca Province of Northwest Spain. In the region tungsten, tin and gold are all associated with mineralised, intra-granitic quartz veining. The veins are steeply dipping to almost vertical. They vary in width from a few centimetres to over two metres, and can extend laterally for a few hundred metres in some cases. 

 

In 1982, ENADISMA (the national mining research company) undertook extensive fieldwork in the exploration area and their second phase of sampling resulted in a total of 179 samples over two prospects- the East and West zones. Best results included: 


Length               (metres)

Width            (metres)

Average Grade            Sn g/t

Average Grade            WO g/t

Vein #3

19

0.91

537

11,959

Workings #4

21

0.72

1,537

215

Vein #4

29

0.26

1,498

731

 

ENADISMA calculated a non-compliant preliminary resource tonnage which they termed "reserve" for the area, from the assay results, for tin, tungsten and tantalum, providing a combined resource of approximately 609,057 tonnes of mineralised material.

 


Seen         tonnes

Probable tonnes

Possible tonnes

Total     tonnes

Sn                g/t

WO              g/t

Ta                g/t

East (0-30m)

11,205

120,420

324,000

455,625

785

1,283

-

East (30-50m)

-

31,590

77,760

109,350

478

3,343

-

West

2,446

22,016

-

24,462

644

818

-

Cruz del Rayo

19,620

-

-

19,620

600

-

22

Totals

33,271

174,026

401,760

609,057




 

None of the samples previously undertaken by ENADISMA in the region covered gold. The board of Metal Tiger believes the region is prospective for gold.  Historical documentation sourced by Metal Tiger often refers to the richness of the local streams for alluvial gold which can still be found today, although the primary source remains elusive.

 

Metal Tiger continues its due diligence process and further announcements on the Project will be made as appropriate.

 

Broker appointment

 

Metal Tiger has appointed SI Capital Limited ("SI Capital") as sole broker to the Company with immediate effect.  As part of their appointment, SI Capital have been issued with 2.5 million warrants to subscribe for 2.5 million new ordinary shares in Metal Tiger, exercisable at 1.5p each at any time over the term of two years from date of appointment.

 

Total voting rights

 

The number of ordinary shares of 0.01 pence in the capital of the Company in issue and number of voting rights following Admission will be 250,372,466. The above figure may be used by Shareholders as the denominator for the calculations by which they will determine whether they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

 

Dr Phil Newall (PhD, BSc, CEng, FIMMM), Independent Consultant Geologist who meets the criteria of a qualified person under the AIM Rules - Note for Mining and Oil & Gas Companies, has reviewed and approved the technical information contained within this announcement.

 

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)

Tel: +44 (0) 20 3328 5656

Nick Emerson

Andy Thacker

SI Capital Limited

(Sole Broker)

Tel: +44 (0)1483 413 500

 


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