Additional Investment in Red Rock Resources
Metal Tiger Plc
("Metal Tiger" or the "Company")
Additional Investment in Red Rock Resources
Metal Tiger plc (LON:MTR) the London Stock Exchange AIM listed investor in strategic natural resource projects is pleased to announce an additional investment in Red Rock Resources (LON:RRR) (“Red Rock”).
Note: We would also refer readers to our announcements dated 29 April 2016 and 24 August 2016 for details of the earlier investments in Red Rock made by Metal Tiger. As announced on 24 August 2016 Metal Tiger purchased 25,000,000 shares in a strategic financing undertaken by Red Rock taking the Company’s holding in Red Rock following admission of placing shares to 78,571,427 shares or 16.81% of issued share capital.
On 7 September 2016 Metal Tiger purchased an additional 2,500,000 shares in Red Rock on the market at an average price per share of 0.4199p increasing Metal Tiger’s holding to 81,071,427 shares equating to 17.35% of Red Rock’s issued share capital.
In addition in association with the financing announced on 24 August 2016 Metal Tiger received 25,000,000 24 month warrants to subscribe for additional Red Rock shares at a price of 0.80p over the next two years. These warrants are added to the 29,761,904 0.84p warrants received with a 30 month exercise period from Metal Tiger’s participation in the April 2016 financing.
Paul Johnson, the Chief Executive Officer of Metal Tiger plc commented: “We continue to build our position in Red Rock in line with our corporate objective of securing larger positions in undervalued resource companies. We note the update provided by Red Rock yesterday confirming the receipt of first oil revenues, an instalment payment following the disposal of the Colombian gold project and progress being made with regard to negotiations in respect of the CML promissory note. Recognising the small market capitalisation of Red Rock, the receipt of circa US$231,000 cash is a material development and the potential for a negotiation of the promissory note position and further incoming working capital is even more attractive.
Whilst the market fails to recognise the value and potential of companies like Red Rock, Metal Tiger will continue to accumulate. Recent history has taught the market that share prices of resource companies perpetually decline, however a slightly longer historical view demonstrates we are in a cyclical business and the upside swings can be as impressive as the downside falls are demoralising.
Metal Tiger now holds 17.35% of Red Rock and we look forward to the business flourishing as the sector continues what we believe is a strong recovery phase. In addition Metal Tiger holds Red Rock circa 54.7m Red Rock warrants to acquire additional shares at further increasing our exposure to the upside potential.
Finally, Metal Tiger will shortly make its nomination request for a seat on the board of Red Rock.”
In the financial year ended June 2015 RRR made a loss of £8,411,541 (unaudited interims to 31 December 2015 loss of £22,025) and had net assets of £7,527,488 (unaudited interims to 31 December 2015 net assets of £7,947,994).
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 listed on the London Stock Exchange AIM Market (“AIM”) with the trading code MTR and invests in high potential mineral projects with a precious and strategic metals focus.
The Company’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. The Company’s key strategic objective is to ensure the distribution to shareholders of major returns achieved from disposals.
Metal Tiger’s Metal Projects Division is focused on the development of its key project interests in Botswana, Spain and Thailand. In Botswana Metal Tiger has a growing interest in the large and highly prospective Kalahari copper/silver belt. In Spain Metal Tiger the Company has tungsten and gold interests in the highly mineralised Extremadura region. In Thailand Metal Tiger has expanding interests over licences, applications and critical historical data covering antimony, copper, gold, silver, lead and zinc opportunities.
The Company has access to a diverse pipeline of new opportunities focused on the natural resource sector including physical resource projects, new natural resource centred technologies and resource sector related fintech opportunities. Pipeline projects deemed commercially viable may be undertaken by Metal Tiger or by an ISDX or AIM partner with whom the Company is engaged.
Metal Tiger also has an Asset Trading Division that holds various financial instruments for trading purposes including equities, warrants and royalty income. The aim of the division is to generate profits to reinvest into the Company’s project based activities.
Copyright Business Wire 2016