Uranium Joint Venture Commenced

RNS Number : 9048F
Metal Tiger PLC
26 February 2015
 

METAL TIGER PLC

26 February 2015

 



Metal Tiger plc

("Metal Tiger" or the "Company")

 

Uranium Joint Venture Commenced

 

On 21 November 2014, AIM listed natural resources investing company Metal Tiger Plc (LON: MTR) announced that it had entered into a Memorandum of Understanding ("MOU") with Kibo Mining Plc ("Kibo") regarding a 50/50 Joint Venture ("JV") on Kibo's uranium-prospective tenements in Tanzania ("Pinewood Portfolio") wholly owned by Kibo's subsidiary company, Kibo Uranium Ltd ("KB Uranium").

 

Highlights:

 

·     Joint Venture Activities have commenced and first funds paid

·     Metal Tiger holds 50% of the Pinewood Portfolio

·     Portfolio consists of 43 licences, offers, applications and tenders with a combined surface area of approximately 9,033 square kilometre in Tanzania

 

Metal Tiger is pleased to announce that it has now commenced activities under the JV with Kibo.  Metal Tiger has transferred the first tranche of funds to cater for the ongoing licence fees and maintenance costs and Metal Tiger has been issued with new ordinary shares in KB Uranium so that the Company now holds 50% of KB Uranium representing Metal Tiger's stake in the 50/50 joint venture of the Pinewood Porfolio.

 

Metal Tiger's CEO, Cameron Parry, commented: "Metal Tiger is pleased to report that its Uranium Joint Venture with Kibo Mining has now commenced.  The Pinewood Portfolio provides an exciting opportunity for the Company's direct project investment division and we are pleased to be extending our working relationship with Kibo on an ongoing basis.  Costs to maintain the licences in good standing are being serviced from Metal Tiger's existing cash resources.

 

Further to the Uranium JV, Metal Tiger will be reporting to the market shortly with progress regarding the anticipated JV of Kibo's Morogoro gold project."

 

Uranium Prospective Joint Venture Areas - Pinewood Portfolio

 

Kibo Uranium Limited, now a 50% owned subsidiary of Kibo Mining Plc, and 50% owned subsidiary of Metal Tiger, owns a portfolio of Uranium prospective assets licences for exploration in Tanzania (collectively the "Pinewood Portfolio").

 

The Pinewood Portfolio of exploration licences is located in the southern western corner of Tanzania, between the regional capitals of Iranga, Mbeya and Songea.  The portfolio consists of 43 licences, offers, applications and tenders with a combined surface area of approximately 9,033 square kilometres.

 

Key Terms of the Uranium Project Joint Venture

 

The parties have commenced under their JV agreement, operating under their MOU on the following terms:

 

·     Kibo Uranium Limited ("KB Uranium"), 50% owned by Kibo Mining Plc and 50% owned by Metal Tiger Plc, owns the Pinewood Portfolio.

 

·     Metal Tiger has commenced meeting the expenses in relation to the licence renewal fees and other maintenance costs of the Pinewood Portfolio for a minimum of 1 year (estimated to be approximately $100,000) and up to a maximum of 3 years.

 

·     Metal Tiger is to expend the first US$800,000 under the JV in expenses and exploration relating to the Pinewood Portfolio, at which point costs moving forward are shared 50/50 between the parties.

 

·     At any time following the first anniversary of the JV, on not less than 90 days notice to Kibo, Metal Tiger may elect to cease sole funding of the JV expenditure.

 

·     Should Metal Tiger elect to not continue with the JV after the minimum term of one year, or fail to expend US$100,000 by the first anniversary of the JV, or should Metal Tiger fail to expend the full expenditure by the third anniversary of the JV then:

 

if less than US$300,000 of the agreed expenditure, the 50% interest in the JV owned by Metal Tiger shall revert back to KB Uranium subject to them exercising a claw-back option;

 

if greater than $300,000 of agreed expenditure, KB Uranium shall have the right to exercise the claw-back option in respect of Metal Tiger's interest in KB Uranium however Metal Tiger shall retain a 10% free carry in the Pinewood Portfolio.

 

 

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

 

Cameron Parry

(CEO)


Tel: +44 (0)207 099 0738

Paul Johnson

(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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