Financing Update - £1,590,000 raised

Metal Tiger plc

13 December 2016

Metal Tiger Plc

("Metal Tiger" or the "Company")

Financing Update - £1,590,000 raised

Metal Tiger plc (LON:MTR) the London Stock Exchange AIM listed investor in strategic natural resource opportunities is pleased to advise that the Company has raised £1,590,000 through a strategic placing and subscription of shares in the Company.

Highlights:

  • Placing of 105,999,988 new ordinary shares in Metal Tiger at a placing price of 1.5p per ordinary share raising gross proceeds of £1,590,000;
  • Issue of 105,999,988 warrants to subscribe for 105,999,988 new ordinary shares in Metal Tiger at an exercise price of 2p per warrant, within a 12 month exercise period (ie. one warrant at 2p for each ordinary share purchased at 1.5p);
  • Placing undertaken at the bid price of Metal Tiger stock at the time the placing was commenced;
  • Funding to augment existing underlying working capital underpinning the Company’s investment in its Metal Projects division and with a specific focus on the Company’s Botswanan project development and Thai Silver-Lead-Zinc mines’ permitting process, as well as to allow the Company to explore corporate activities;
  • Metal Tiger directors are participating in the placing (Charles Hall Chairman £30,000 for 2,000,000 shares, Michael McNeilly CEO £10,000 for 666,666 shares and Paul Johnson Non-Executive Director £25,000 for 1,666,666 shares).

Michael McNeilly, Chief Executive Officer of Metal Tiger plc, commented: “This funding places Metal Tiger in a strong position and enables the Company to further develop its Metal Projects division and explore value generative commercial transactions. The fund raise is the largest single sum raised by the Company and I am very pleased with the continued and new support we received from existing and new shareholders. The Company remains focused on attracting robust institutional investment and discussions of late, after receipt of the Botswanan scoping study, have indicated that we are closing in on our objective.

Since late November investors have been more focused on the corporate events surrounding Metal Tiger, rather than the underlying value in the Company’s core projects. The board believes that these projects hold significant value which is considerably in excess of the current market capitalisation. This position is supported by broker and analyst reports prepared in respect of the Company.

Given the recent interest in our Joint Venture in Botswana it is essential that we enter 2017 in a position of strength being able to demonstrate to the market, to parties interested in the project in Botswana and to our joint venture partners that we are able to meet our financial commitments.

We are also looking to further strengthen the Board, and in particular are looking to appoint a technical director who can support our investments on the ground.

Whilst our Asset Trading division holds a diverse range of resource equity interests and is showing a significant profit against the original cash invested, we will not utilise any of the funds raised today for additional Asset Trading investments. Instead, that division can only utilise funds generated internally for any further investments. This is in line with the Strategy Update published to the market on 9 December 2016.

Metal Tiger now has the business model and cash resources to push ahead with key projects and the Board is committed to growing the inherent value in the Company’s portfolio and demonstrate the significant value that can be added by careful dedicated investment into the Metal Projects division.”

Placing and Subscription Summary

Metal Tiger has agreed a placing and subscription to raise £1,590,000 gross proceeds through the issue of 105,999,988 new ordinary shares in Metal Tiger at a price of 1.5p per share (the “Placing Shares”).

Each Placing Share issued has an accompanying warrant to subscribe for an additional new ordinary share at a price of 2p in Metal Tiger at any time within the 12 months following admission to trading of the Placing Shares (a total of 105,999,988 warrants).

Director Shareholdings and Related Party Disclosures

Following the placing the Directors of the Company will hold the following total shares and percentage interests in the issued share capital of the Company:

    Placing   Resultant
Director Position Shares Holding
Charles Hall Non-Executive Chairman 2,000,000 24,858,406 (3.24%)
Michael McNeilly Chief Executive Officer 666,666 1,666,666 (0.22%)
Keith Springall Finance Director 564,092 (0.07%)
Terry Grammer Non-Executive Director 38,150,667 (4.97%)
Paul Johnson Non-Executive Director 1,666,666 11,857,221 (1.55%)

Total Voting Rights

The Placing Shares are expected to be admitted to trading on or around 29 December 2016. Following the issue of the total Placing Shares, the number of ordinary shares in issue in the Company will increase 767,132,657 shares. 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 767,132,657 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:

Michael McNeilly (Chief Executive Officer)     Tel: +44 (0)20 7099 0738
Keith Springall (Finance Director & Company Secretary) Tel: +44 (0)20 7099 0738
Sean Wyndham-Quin

Neil Baldwin

Spark Advisory Partners Limited

(Nominated Adviser)

Tel: +44 (0) 2033 683 555

 

www.sparkadvisorypartners.com

Nick Emerson

Andy Thacker

SI Capital

(Joint Broker)

Tel: +44 (0)1483 413 500
Andrew Monk

Andrew Raca

VSA Capital Limited

(Joint Broker)

Tel: +44 (0)20 3005 5000
Gordon Poole

Sean Blundell

Camarco

(Financial PR)

Tel: +44 (0)203 757 4980

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