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Investment Strategy Update & Executive Appointment

RNS Number : 1850D
Metal Tiger PLC
27 January 2015
 

METAL TIGER PLC

27 January 2015

 



Metal Tiger plc

("Metal Tiger" or the "Company")

 

Investment Strategy Update and Executive Appointment

 

Metal Tiger Plc (LON: MTR), the natural resources investing company, is pleased to update shareholders with regard to the Company's progression of its strategic direction and latest developments.

 

The Board of Metal Tiger recognises that currently there is a window of opportunity for a well funded company able to identify, negotiate and invest in undervalued resource opportunities.  Metal Tiger's business model and management structure has evolved to seize this opportunity and maximise returns for shareholders.

 

Strategic Investment Update

 

Metal Tiger has established two distinct investment divisions as outlined below.

 

Direct Project Investments

 

Metal Tiger continues to build its direct project investment base.  This portfolio includes:

 

·    Thailand precious and base metals opportunities - first prospecting licence already granted;

 

·    Negotiations in process on gold exploration interests in Spain;

 

·    Due Diligence ("DD") complete and Joint Venture ("JV") documentation underway with Kibo Mining Plc ("Kibo") for exploration of Uranium-prospective areas in Tanzania;

 

·    Working collaboration with Eurasia Mining Plc ("Eurasia") on new project development;

 

·    DD in process for a JV with Kibo on a portfolio of gold-prospective properties located in Tanzania; and

 

·    Expanding project opportunity pipeline with European, African and South East Asian precious metals exploration targets.

 

Direct Equity Investments

 

Recognising the extremely low market valuations of many listed junior resource companies, Metal Tiger has identified an opportunity to provide funding to companies that meet Metal Tiger's selection criteria.  Metal Tiger is particularly keen to support those companies whose near term news flow is indicated to include potentially transformational information, the prospect of which, the Directors believe has not been fully factored into the company's share price by the market.

 

Metal Tiger's financing proposals are deliberately structured in a manner that supports each investee company's desire for reasonably priced working capital and provides a mechanism for further funding should the investee company achieve its objectives, whilst providing Metal Tiger shareholders with significant potential upside.

 

This bespoke financing approach has to date included a combination of direct investment in shares with premium-priced warrants.

 

To date Metal Tiger has made two material investments, one in Kibo (LON:KIBO) and the other in Eurasia (LON:EUA).  Further direct equity investments are under review at present and the Company intends to continue to innovate with regard to financing structures as additional transactions are entered into.

 

Metal Tiger has also established a portfolio of direct on-market purchased equity investments in small AIM listed natural resource juniors, applying stock selection analysis similar to that used for the Company's larger scale direct equity acquisitions. This portfolio continues to evolve as and when suitable opportunities present.

 

Management Structure Update

 

Recognising the development of Metal Tiger since its launch in mid-2014 and the increasingly active investing operations outline above, Metal Tiger is pleased to announce the appointment of Mr Paul Johnson from Non-Executive Director to Executive Director, to share the work and responsibilities of identification, assessment and management of the Company's investments.

 

In line with the move to Executive status, it is the Company's intention to increase Paul Johnson's management share options to 5 million in total, in line with Metal Tiger's existing Executive Director, CEO Cameron Parry.  This will require the issue of an additional 3.33m share options, the exercise price of which is expected to be set at 1.75p per share with a three year exercise period from date of issue.  These new management options will be formally confirmed to the market subject to the Company not being in a close period.

 

Metal Tiger's CEO, Cameron Parry, commented: "Metal Tiger was created to commercially exploit the undervalued opportunities in the current landscape of the junior exploration sector, building value for its shareholders.  The knowledge and connections of Metal Tiger's team are extensive and we are working hard to rapidly grow our investment base with high-value potential assets.  Metal Tiger's structure and strategy enables us to dynamically drive the Company forward, and as part of this I am delighted that Paul Johnson has increased his day-to-day commitment to Metal Tiger and joins me as an Executive Director of the Company. 

 

With carefully constructed direct project investment partnerships, both general, e.g. Eurasia collaboration, and specific, such as the Kibo uranium JV, combined with shrewd direct equity investing, we believe there is an opportunity to build tremendous value for our shareholders in 2015."

 

 

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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