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Thai Exploration Licence Granted & JV Update

RNS Number : 5800Z
Metal Tiger PLC
12 December 2014
 



Metal Tiger plc

("Metal Tiger" or the "Company")

 

Grant of Thai Exploration Licence and Joint Venture Update

 

In line with the Company's investing policy and the Joint Venture Agreement ("JVA") announced on 28 October 2014, entered into with Thailand-based South East Asia Exploration and Mining Company Limited ("SEAM") and Southeast Asia Mining Corp.

RNS Number : 5800Z
Metal Tiger PLC
12 December 2014
 



Metal Tiger plc

("Metal Tiger" or the "Company")

 

Grant of Thai Exploration Licence and Joint Venture Update

 

In line with the Company's investing policy and the Joint Venture Agreement ("JVA") announced on 28 October 2014, entered into with Thailand-based South East Asia Exploration and Mining Company Limited ("SEAM") and Southeast Asia Mining Corp., the parent company of SEAM, (together "Thai JV Partners"), Metal Tiger is pleased to announce that an exploration licence has been granted by the Thai government for one of the properties that form the JVA. 

 

Metal Tiger is also pleased to announce that the JVA has been amended to see Metal Tiger take a 10% equity holding in each of the two new Thai companies incorporated for the purpose of the JVA ("the Thai JV Companies").

 

Metal Tiger's CEO, Cameron Parry, commented: "The board of Metal Tiger is delighted that the first of our Thai JVA prospecting licences has been granted.  This now opens the door for Metal Tiger to invest in exploration activities in Thailand that develop value, whilst continuing to systematically progress licensing for the remaining JVA properties.  Metal Tiger is also very pleased to reaffirm the commitment of the parties to the joint venture by Metal Tiger being issued with a 10% equity in the Thai JV Companies from day one."

 

Prospecting Licence Granted

An Exclusive Prospecting Licence ("EPL") has been granted in Thailand on one of the Chanthaburi properties that form part of the JVA.

 

An EPL is a document granted for an applicant to have sole mineral prospecting and exploration rights within a designated area in Thailand. An EPL is issued by the Minister of Industry and is valid for one year, at which point the licence, subject to approval, may be extended as an EPL, or the area issued with a Special Prospecting Licence for 5 years, or should an early discovery warrant, and subject to satisfying the necessary requirements, be  elevated to a Mining Lease.

 

Details of Area Licensed

The JVA property that the EPL covers is an area totalling 187 hectares in the Phawa subdistrict of the Kaeng Hang Meoa district of the Chanthaburi province, in the South East of Thailand.  Approximately 300 kilometres east of Bangkok, the property is located in the area locally known as the 'Gold-Antimony Belt'. The EPL enables Metal Tiger to invest in exploration activities to be carried out on site for the period ending 25 September 2015.

 

JV Update - Metal Tiger immediate equity holding

The two new Thai companies contemplated under the JVA ("the Thai JV Companies") have been incorporated and Metal Tiger has deposited the first tranche of funds for expenditure related to progressing licences and exploration.

 

The parties have agreed that Metal Tiger take an equity holding of 10% in each of the Thai JV Companies on its way to, subject to certain milestones, ultimately see Metal Tiger acquire 75% of the Thai JV Companies under the terms of the JVA as announced by the Company on 28 October 2014 and detailed below.

 

Subject to achieving the stated milestones that are satisfactory to Metal Tiger, a total consideration of US$150,000 in cash is payable by Metal Tiger to SEAM (of which US$25,000 has been paid as per below) for Metal Tiger to ultimately acquire a 75% joint venture stake in the gold prospective properties which are the subject of the JVA. 

 

To date Metal Tiger has paid:

 

·     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); and

·     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.

 

Two further payments are scheduled under the JVA within the next 18 months:

 

·     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 an initial  US$150,000 (of which US$30,000 has already been paid) 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 has been paid 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 is 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 is 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 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 as follows: (i) the first US$5,000 (or part thereof) to SEAM; and (ii) the balance of funds to Metal Tiger.

 

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)

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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