METAL TIGER PLC
16 March 2015
Metal Tiger plc
("Metal Tiger" or the "Company")
Spanish Gold & Tungsten Joint Venture Signed
In line with the Company's investing policy, Metal Tiger (LON: MTR) is pleased to announce that following introduction by Chairman Terry Grammer and a period of due diligence running concurrently to negotiations, on 13 March 2015 Metal Tiger entered into a binding Memorandum of Understanding ("MOU") to commence funding exploration activities for gold and tungsten in Spain under a Joint Venture ("JV") in which Metal Tiger has the right to earn-in up to a 50% interest.
· Due diligence complete and Joint Venture signed
· Primary metals targeted: gold and tungsten
· Extensive sampling and surveys conducted over past 18 months
· Metal Tiger to inject €100,000 up to a maximum €500,000 for 50% JV interest
· Portfolio consists of 1 licence and 2 licence applications, with a combined surface area of approximately 238 square kilometres in Extremadura, Spain
Metal Tiger is pleased to announce that, following completion of negotiations and due diligence, it has entered into a Joint Venture with Logrosan Minerals Ltd (a Special Purpose Vehicle "SPV" company incorporated in the UK). Metal Tiger is to fund up to the next €500,000 in exploration work, with the first payment being €100,000 and the balance of up to a total of €500,000 to be transferred over the balance of 2015 in line with an agreed exploration programme that includes up to 5,000 metres of drilling. Metal Tiger to be issued with new ordinary shares in Logrosan Minerals Ltd in line with funds injected. Should Metal Tiger provide the total €500,000 2015 exploration programme funding it will hold 50% of the shares on issue in Logrosan Minerals Ltd.
Metal Tiger's Chairman, Terry Grammer, commented: "Metal Tiger is pleased to be commencing its first exploration activities in Spain. The Board determined this Spanish project, based on the detail and level of work that had already been undertaken, and the commercial terms agreed, made this joint venture a stand-out opportunity for Metal Tiger and its shareholders. Metal Tiger shall provide a follow-up detailed update about historic data and we look forward to reporting on findings under the JV over the course of this year."
Joint Venture Terms
Under the terms of the MOU, Metal Tiger is investing €100,000 upfront with up to an additional €400,000 payable over the course of 2015, made up of varied monthly amounts in line with an agreed exploration programme that includes up to 5,000 metres of drilling. Each monthly payment made by Metal Tiger provides the exclusive right to make payment of the other monthly instalments, however it is at Metal Tiger's discretion as to whether it continues to be the sole funder of this amount or brings in co-investors under the same terms as Metal Tiger's equity investment.
Should Metal Tiger be the sole investor and make the total €500,000 in payments for equity in the SPV, then Metal Tiger will acquire a total of 50% of the shares of the SPV, at which point it is up to the board and shareholders of the SPV as to how further stages are funded.
Joint Venture Areas
The SPV holds 1 granted licence and 2 licence applications for a total area of 238 square kilometres in Logrosán, a municipality of the province of Cáceres in Extremadura, Spain. The exploration licence ("Antonio Caño", 10314-00) covers an area of 88.85 square kilometres. The licence was granted on 2 December 2013 for a period of three years. The "San Cristóbal" and "Zorita" licence applications cover a further area of 148.98 square kilometres adjacent to the "Antonio Caño" licence.
For further information on the Company, visit: www.metaltigerplc.com:
Tel: +44 (0)207 099 0738
Tel: +44 (0)7766 465 617
Spark Advisory Partners Limited
Tel: +44 (0) 2033 683 555
SI Capital Limited
Tel: +44 (0) 1483 413 500
This information is provided by RNS