Spanish Progress Update and Standstill Agreement
Metal Tiger Plc
15 February 2016
Metal Tiger plc
("Metal Tiger" or the "Company")
Spanish Progress Update and Standstill Agreement
Metal Tiger plc (LON:MTR) the London Stock Exchange AIM listed investor in strategic natural resource opportunities is pleased to announce an update with regard to the Company's investing activities in Extremadura, Spain.
- A full review is underway in respect of the entire 2015 Spanish exploration programme and a separate update will be provided on the achievements of 2015 and the next steps planned in respect of the Logrosán and Zorita licences;
- Of the €500,000 Logrosán spend commitment by Metal Tiger €450,000 has now been paid to the Joint Venture by Metal Tiger with the remainder to be applied to Maria due diligence drilling outlined below;
- Work undertaken in 2015 has achieved principal objectives to delineate the extent of tungsten and gold mineralisation and delineate extent of mineralisation across key targets;
- Recognising the success to date Metal Tiger are looking to expand Spanish interests in association with existing Joint Venture partners;
- A separate standstill agreement ending 10.3.16 has been reached to provide Metal Tiger with time to conduct due diligence over the Mineral Exploration Network (Finland) 100% owned Maria exploration project consisting of the Maria exploration licence which is principally prospective for gold mineralisation;
- With Metal Tiger's approval the drill rig has now been moved to Maria to undertake due diligence drilling at that licence which if successful may lead to the acquisition of an interest in Maria by Metal Tiger;
- Further updates to follow with regard to drilling results achieved at Maria and in respect of any commercial transactions that may be crystallised during or shortly after the due diligence period.
Paul Johnson, Chief Executive Officer of Metal Tiger plc commented: "We are delighted with the progress achieved by our Joint Venture partners in Spain and our experience to date has been very positive. We are now working with Mineral Exploration Network (Finland) to consider building on our existing interests with an additional licence.
This licence is attractive due to the historical information we have received on the property and the results from work undertaken by MEN (Finland) in recent times. It is also geographically close to our other Spanish interests and is principally gold focused. Metal Tiger is keen to build on our existing interests and also to add to its gold portfolio and the Maria licence would fit well with our ambitions.
By moving the drill rig to the Maria Project we gather valuable exploration data and project information, which will help us during our due diligence process."
Background to the Logrosán Joint Venture:
Metal Tiger entered into a Joint Venture with Logrosán Minerals Ltd (a Special Purpose Vehicle "SPV" company incorporated in the UK) on 13 March 2015. Logrosán Minerals Limited is the operating company for the Logrosán Exploration Project. Over the prior 18 months, Metal Tiger's joint venture partner in Logrosán Minerals Ltd, Mineral Exploration Network (Finland) Ltd, had carried out more than 40,000 soil samples, hundreds of pan-concentrate samples, covered thousands of linear kilometres with ground magnetic survey and assessed electro-magnetic tomography. The presence of Tungsten mineralisation has been confirmed by soil sampling, outcrop sampling, trenching and historical drill holes. Gold mineralisation has been confirmed by pan-concentrate and findings to date delineate three significant anomalies, being one square kilometre each.
Metal Tiger was to fund up to €500,000 in exploration work over the balance of 2015 in line with an agreed exploration programme that included up to 5,000 metres of drilling. During this period ended 31 December 2015 the Joint Venture expended €400,000 on exploration work and approximately 4,700m of drilling was completed.
The remaining €100,000 has been rolled over into 2016 with the agreement of both parties. Since the start of the year Metal Tiger has paid a further €50,000 into the joint venture making payments to date of €450,000. As a result Metal Tiger has now earned into 45% of Logrosán Minerals Ltd in line with funds injected. The balancing holding in the SPV is held by Mineral Exploration Network (Finland) Ltd ("MEN (Finland)").
An agreement has been made to enable the remaining €50,000 of exploration work to be undertaken at the Maria Exploration Project, which is principally prospective for gold, however recent work has also highlighted a Tungsten target within the licence area that may warrant further investigation. Further details in relation to standstill agreement with MEN (Finland) in relation to the Maria project, are provided below.
The Logrosán Joint Venture SPV holds 2 granted licences and 1 licence application 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 and was granted on 2 December 2013 for a period of three years. The Zorita Exploration Licence covers an area of 105.96 km2, it is valid for 3 years starting 18 June 2015 and is renewable for a total of 9 years. The "San Cristóbal" licence application covers a further area of 148.98 square kilometres adjacent to the "Antonio Caño" licence.
Standstill Agreement - Maria Project:
Metal Tiger has reached an agreement with our Logrosán Joint Venture partners Mineral Exploration Network (Finland) Limited for a standstill agreement ending 10 March 2016 during which time Metal Tiger will be able to conduct due diligence in respect of the Maria Project, currently held 100% by MEN (Finland) Ltd.
As part of the due diligence process Metal Tiger have agreed to allow the drill rig to be moved to the Maria Project where drilling and assay testing will be undertaken to assess the nature and extent of mineralisation.
Subject to due diligence work, the results encountered and the normal process of commercial negotiations, Metal Tiger and Mineral Exploration Network (Finland) Ltd may elect to bring the Maria Project under Joint Venture between the companies. Unless and until a commercially binding contract is achieved, there can be no assurance that a transaction of any nature can or ill be concluded.
Further information with respect to the Maria Project will be provided in due course, as appropriate.
Mr Nick O'Reilly (MSc, DIC, MAusIMM, FGS), is a qualified geologist who meets the criteria of a qualified person under the AIM Rules - Note for Mining and Oil & Gas Companies, he has visited the Project Area, overseen the drilling and sampling and reviewed the technical information contained within this announcement. Mr O'Reilly is a consultant working for Mining Analyst Consulting Ltd which has been retained by Metal Tiger PLC to review the work undertaken on the Logrosán Exploration Project.
For further information on the Company, visit: www.metaltigerplc.com:
Paul Johnson (Chief Executive Officer)
Tel: +44 (0)7766 465 617
Terry Grammer (Non- Executive Chairman)
Tel: +44 (0)207 099 0738
Spark Advisory Partners Limited
Tel: +44 (0) 2033 683 555
Tel: +44 (0) 1483 413 500
Notes to Editors:
Metal Tiger plc is a natural resources focused investing company quoted on the London Stock Exchange AIM Market ("AIM") with the trading code MTR and two investment divisions, Direct Projects and Direct Equities.
The Direct Projects division invests in mineral exploration projects operated by trusted partners on the ground. Projects are selected for their strategic significance in terms of commodity, location and commerciality factors. Key strategic investments to date include Spanish Gold & Tungsten, Thai Gold, Copper & Antimony, and Botswanan Copper & Silver.
The Direct Equities division invests in quoted natural resource explorers and developers, with a combination of shares and warrants and seeks generate trading profits for reinvestment into the Direct Projects division.
Metal Tiger's target is to deliver a very high return for shareholders by investing in significantly undervalued and/or high potential opportunities in the mineral exploration and development sector timed to coincide where possible, with a cyclical recovery in the exploration and mining markets.
This information is provided by RNS