Additional Investment in Red Rock Resources
Metal Tiger Plc
("Metal Tiger" or the "Company")
Additional Strategic 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 strategic investment in Red Rock Resources (LON:RRR) ('Red Rock').
We would refer readers to our announcement dated 29 April 2016 for details of the earlier investment in Red Rock made by Metal Tiger.
- Metal Tiger to subscribe for 25,000,000 new ordinary shares in Red Rock at 0.4p per new ordinary share for a total additional investment of £100,000;
- Metal Tiger to receive an additional 25,000,000 warrants exercisable at 0.8p and with a 24 month longevity from admission to trading of the Red Rock placing shares on AIM;
- Following the transaction Metal Tiger will hold 78,571,427 shares in Red Rock representing 16.81% of the post financing issued share capital;
- In addition following the transaction Metal Tiger will hold 29,761,904 warrants in Red Rock exercisable at 0.84p (see announcement dated 29 April 2016 for warrant terms) and 25,000,000 warrants exercisable at 0.8p (warrant terms as outlined above);
- MTR intends to exercise its right (granted previously in conjunction with the 29 April 2016 Red Rock financing) to nominate a non-executive director to the board of Red Rock.
That said, we also recognise that in a recovering resource market environment the best returns for shareholders can often lie in the reigniting of investment in hard rock mineral deposit opportunities, notably within precious and strategic metals. We are pleased that the Red Rock management team shares our thoughts in this regard and will seek to drive the strategic direction of the company to open up to the development of hard rock opportunities.
Red Rock has demonstrated an ability to deliver substantial returns from low sector sentiment conditions and we believe is worthy of further investment in readiness for the next recovery phase.
In the financial year ended June 2015 RRR made a loss of £8,411,541 (interims to 31 December 2015 loss of £22,025) and had net assets of £7,527,488 (interims to 31 December 2015 net assets of £7,947,994).
|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||Spark Advisory||Tel: +44 (0) 2033 683 555|
|Neil Baldwin||Partners Limited|
|Nick Emerson||(Nominated Adviser)||www.sparkadvisorypartners.com|
|Andy Thacker||SI Capital (Sole Broker)||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.
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Metal Tiger plc
Source: Metal Tiger plc