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Invt In Eurasia Mining and Project Collaboration

RNS Number : 8195A
Metal Tiger PLC
29 December 2014
 



METAL TIGER PLC

Investment in Eurasia Mining and Project Collaboration

Metal Tiger PLC

29 December 2014

 

 

Metal Tiger plc

("Metal Tiger" or the "Company")

 

New Project Collaboration & Investment Agreement

Metal Tiger plc becomes a shareholder in Eurasia Mining plc through £150,000 equity investment

 

In line with the Company's investing policy and strategic update announced on 24 July 2014, Metal Tiger Plc (LON: MTR), the AIM listed natural resources investing company, is pleased to announce that it has entered into a New Project Collaboration & Investment Agreement (the "Agreement") with Eurasia Mining plc (LON:EUA) ("Eurasia") that includes a direct equity investment of £150,000 by Metal Tiger in the ordinary shares of Eurasia.

 

Metal Tiger's CEO, Cameron Parry, commented: "Metal Tiger is pleased to enter into the collaboration & investment agreement, which enables the Company to invest directly in Eurasia as well as engage with new investment opportunities identified by the Eurasia team.  The Agreement enables Metal Tiger to participate jointly with Eurasia on opportunities in the geographic and commodity areas where Eurasia has extensive knowledge and operational capability.   A key to this collaboration, much as with our recent commercial involvement with Kibo Mining Plc announced on 21 November 2014, is the expansion of Metal Tiger's investment reach by partnering with locally focussed companies with established ground operations.

 

Metal Tiger is pleased to be investing £150,000 in the Ordinary Shares of Eurasia, where we see the opportunity for significant near term value generation; in particular with the potential receipt of a mining licence at West Kytlim that would enable Eurasia to move into Platinum Group Metals production activities."

 

Metal Tiger and Eurasia entered into the New Project Collaboration & Investment Agreement on 24 December 2014 granting Metal Tiger the right of first refusal to participate and co-fund, on an equal basis with Eurasia, any new projects or investments undertaken by Eurasia for the period of 18 months from the date of the Agreement. 

 

Under the Agreement Metal Tiger will have ten business days in which to decide whether to participate or not from the date each opportunity is communicated in writing to the Company.  This includes any existing projects under review by Eurasia but not yet formally announced to the market.  For the avoidance of doubt, this does not include the Eurasia Mining Plc projects known as the Urals Alluvial Platinum project and the Kola PGM project.

 

As part of the Agreement, Metal Tiger has agreed to immediately acquire 30,000,000 new ordinary shares in Eurasia (the "Subscription Shares") at a price per share of 0.5p per Subscription Share ("the Subscription") - a total of £150,000 into Eurasia Mining funded from the Company's existing cash resources.  Payment for the shares has been made and immediately following receipt of funds, an application shall be made by Eurasia for the Subscription Shares to be admitted to trading on AIM.  In the year to 31 December 2013, Eurasia made a loss before tax of £750,000.  On admission of the Subscription Shares Metal Tiger will become a shareholder in Eurasia Mining Plc with a beneficial interest in 2.71% of Eurasia's issued share capital. .

 

As part of the transaction Eurasia will also issue Metal Tiger with warrants over 30,000,000 new ordinary shares in Eurasia Mining Plc, exercisable within a three-year term at an exercise price of 1p each.  However, should Eurasia announce to market receipt of a licence to mine platinum in respect of the West Kytlim project, then the exercise price of any Metal Tiger Warrants that have not been exercised by that date will be increased by 50% to 1.5p each. 

 

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

 

Cameron Parry

(CEO)


Tel: +44 (0)207 099 0738

Paul Johnson

(Non-Executive Director)


Tel: +44 (0)7766 465 617

Sean Wyndham-Quin

Neil Baldwin

Spark Advisory Partners Limited

(Nominated Adviser)

Tel: +44 (0) 2033 683 555




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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