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Thailand Expansion - Option Exercised

RNS Number : 1414P
Metal Tiger PLC
16 February 2016

Metal Tiger Plc

16 February 2016

Metal Tiger plc

("Metal Tiger" or the "Company")



Thailand Expansion - Option Exercised


Metal Tiger plc (LON:MTR) the London Stock Exchange AIM listed investor in strategic natural resource opportunities is pleased to announce confirmation that the Company has exercised its option to acquire the remainder of South East Asia Mining's ("SEAM") Thailand interests details of which were announced to market on 24 November 2015.





-      Metal Tiger has exercised the option to acquire the remainder of SEAM Thailand interests providing a robust portfolio of interests in-country;

-      After concurrent disposal of 10% to a local Thai operating Company Metal Tiger will own 90% of expanded Thai interests;

-      A cash payment made to vendors, SEAM, of US$200,000 funded entirely from existing resources, and a shares payment of US$300,000 of 23,799,000 shares at 0.87p calculated on a 14 day vwap prior to SEAM shareholder approval;

-    A potential further cash payment of US$100,000, a $60,000 working capital contribution and issue of 23,799,000 warrants over Metal Tiger ordinary shares, subject to SEAM being granted its primary target prospecting licence 1/2557 in the Kanchanaburi province in Western Thailand; and

-      Metal Tiger is actively engaged with Thai operating partners to continue work programme across the Thai interests and to investigate additional opportunities.



Paul Johnson, Chief Executive Officer of Metal Tiger plc commented: "we are delighted to announce the exercise of this option which sees Metal Tiger acquire 90% of the entire SEAM Thailand portfolio and which provides the Company with a significant portfolio of precious and strategic metal interests in Thailand. 


The strategic value of this acquisition is very important as we build our investment in Thailand.  That investment is lent more credibility because the local Thai operating team, including key members of the SEAM organisation, have extensive operating experience in Thailand. 


With this acquisition now undertaken, our focus moves to building on this foundation by investing in work on the ground in our existing interests and by adding new opportunities that offer material value upside for shareholders.


We will ensure shareholders are kept fully updated at the earliest opportunity as we move to develop our Thai interests through organic growth and additional opportunities."



Terms of Option Exercise:

Metal Tiger has now elected to exercise its option to acquire the remainder of SEAM's Thailand interests (the "SEA Option") with an initial consideration of US$500,000 (the "Consideration").  This is satisfied by a combination of cash and shares as outlined below. 


A payment of US$200,000 in cash (the "Cash Payment") which has been funded from existing cash resources and US$300,000 through the issue of 23,799,000 new ordinary shares in Metal Tiger (the "Share Payment") at a price of 0.87p, calculated per new ordinary share being the volume weighted average price ("VWAP") for the 14-day calendar period immediately prior to SEA shareholder approval of the SEA Option which occurred at a General Meeting of the SEAM shareholders on 12 January 2016.


In addition, Metal Tiger has also agreed that subject to SEAM being granted its primary target prospecting licence 1/2557 in the Kanchanaburi province in Western Thailand, it will pay SEA shareholders a further US$100,000 in cash, advance a further sum of US$60,000 to be used by SEAM for working capital (specifically coverage of payments which become due only on the licence being granted) and grant to SEA shareholders a number of warrants (23,799,000 ) equal to the number of new ordinary shares issued as part of the satisfaction of the Share Payment element of the Consideration (the "SEAM Warrants"). The SEAM Warrants will be subject to a 3 year term from the date of exercise of the SEA Option and will be subject to an exercise price of twice the share price per ordinary share at which the Share Payment is issued (1.74p).


Thailand Interests Now 90% held by Metal Tiger:


Following exercise of the exercise of the SEA option, the following interests are now 90% held by Metal Tiger, with 10% held by a local Thai operating company:



-        Eight Special Prospecting Licence Applications ("SPLAs") surrounding the historical mining operations at Boh Yai and Song Toh Silver-Lead-Zinc mines in Western Thailand where historical Metallgesellschaft and German consultant records indicate over five million tonnes of crude ore was processed producing approximately 520,000 tonnes of concentrate to smelter over a 22 year period;


-        Exploration and Mining database specifically relating to Boh Yai and Song Toh mines.  This includes local/regional mapping, soil & rock chip sampling and three geophysics programs.  Furthermore the dataset includes material utilised to produce a NI 43-101 resource and Preliminary Economic Assessment extending to mine planning, geology and micro mine files,  economic modelling and conceptual tailings planning;


-        Two Mining Lease Applications overlaying historical Kanchanaburi mining lease applications;


-       One Exclusive Prospecting Licence Application ("EPLA") in respect of a Gold-Antimony focused project in the Chanthaburi province, in the South East of Thailand where the Company has published findings from initial work undertaken by the JV during 2015 including the identification of gold anomalies requiring further investigation;


-       One Mining Lease Application in the Chanthaburi province situated in what is known locally as the 'Gold-Antimony Belt'; and


-        Two SPLAs covering 31 square kilometres and relating to projects in the Nakon Sawan and Lopburi provinces within the Loei-Phetchabun part of what is known locally as the 'Copper-Gold Belt'.


Share Issue to SEAM - Summary


Metal Tiger is issuing SEAM with 23,799,000 Metal Tiger new ordinary shares at price per share of 0.87p (the "Acquisition Shares").


The acquisition shares are expected to be admitted to trading on or around 22nd February 2016.  Following the issue of the Acquisition Shares, the number of ordinary shares in issue in the Company will increase to 442,799,795.  For the purposes of the Financial Conduct Authority's Disclosure and Transparency Rules ("DTRs"), the issued ordinary share capital of Metal Tiger following this allotment consists of 442,799,795 ordinary shares with voting rights attached (one vote per share). There are no shares held in treasury.  This total voting rights figure may be used by shareholders as the denominator for the calculation by which they will determine whether they are required to notify their interest in, or a change to their interest in, Metal Tiger under the DTRs.



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

Sean Wyndham-Quin

Neil Baldwin

Nick Emerson

Andy Thacker

Spark Advisory Partners Limited

(Nominated Adviser)

SI Capital

(Sole Broker)


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.



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