Metal Tiger plc
("Metal Tiger" or the "Company")
Update on exploration license option in Spain
On 9 October 2014 the Company entered into an option arrangement (the "OA") for an exploration licence covering a licensed area in North-West Spain (the "Project"). The Project is prospective for gold, tungsten and tin and covers an area of 2,987 hectares. Under the terms of the OA, Metal Tiger was able to acquire an 80% joint venture stake in the Project subject to Metal Tiger triggering certain staged option milestones and payments over an 18 month period.
Metal Tiger announces that, following the 60-day due diligence and exclusivity period under the OA, the board of Metal Tiger has elected not to exercise its option under the OA and not enter into the joint venture ("JV") under the terms previously announced on 10 October 2014 that included the issue of new shares in Metal Tiger to the vendors at 1.25p each.
Subsequently Metal Tiger has agreed a new 30-day exclusive option with the vendors commencing on 9 December 2014, at no cost to the Company, to negotiate new JV terms for the Project.
Metal Tiger's CEO, Cameron Parry, commented: "Whilst the board of Metal Tiger believes in the potential of the Project, the board was ultimately not satisfied with the commercial terms of its initial option following the 60 day due diligence period. As such, Metal Tiger has entered into a new exclusive 30-day option, at no cost to the Company, to negotiate terms that the board believes will be attractive and appropriate for the Company in the context of the current market conditions. Metal Tiger continues to concurrently investigate a number of investment opportunities that meet the Company's requirements and ambitions."
The exploration licence (Treparriscos 3 No 6.858) covers an area of 2,987 hectares surrounding the town of Navasfrias in the Salamanca Province of Northwest Spain. The license was granted on 20 September 2013 for a period of three years by the Mining Department of the Casitlla y Leon provincial government.
The Board understand that Alluvial gold has been found in the Ãgueda River, a tributary of The Douro which forms the border between Spain and Portugal and which flows through the tenement. Organised mining operations were extensive in the region until 1940 extracting tungsten, tin and gold and local residents continued to pan for gold in the tenement until the 1950s. Several mining companies successfully extracted tin and tungsten during the 1970s and 1980s.
The Board considers that there is the potential to explore the project's tenement area more thoroughly, primarily for gold, using modern exploration techniques such as aerial, geophysical and geochemical surveys.
For further information on the Company, visit: www.metaltigerplc.com or contact:
Tel: +44 (0)207 099 0738
Tel: +44 (0)7766 465 617
Allenby Capital Limited
Tel: +44 (0) 20 3328 5656
SI Capital Limited
Tel: +44 (0) 1483 413 500
This information is provided by RNS