RNS Number : 0320U

Metal Tiger PLC

20 November 2019

20 November 2019

Metal Tiger plc

("Metal Tiger" or the "Company")

Update on Cobre Pty Ltd Investment

Metal Tiger plc (AIM:MTR), the London Stock Exchange AIM listed investor in strategic natural resource opportunities, is pleased to provide an update on its investment in Cobre Pty Ltd ("Cobre"). In light of positive pre-marketing by Cobre, Metal Tiger has entered into a side letter with Cobre (the "Side Letter"), varying the terms of its subscription agreement dated 2 September 2019 (the "Subscription Agreement"), in order to allow Cobre to increase the size of its offering and raise A$10m as part of its proposed IPO on the Australian Stock Exchange ("ASX") (the "Cobre IPO").

Under the terms of the Side Letter, Metal Tiger will be issued with an additional 750,000 fully paid new ordinary shares in Cobre ("Cobre Shares") for a nominal subscription price of, in aggregate, A$1 within five business days (the "Additional Pre-IPO Shares"), in order to compensate the Company for the dilutive effects of the increased fundraise.

The issue of the Additional Pre-IPO Shares will increase Metal Tiger's aggregate pre-IPO shareholding to 7,350,000 Cobre Shares, representing approximately 15.7% of Cobre's then issued share capital. Cobre has agreed to fully indemnify Metal Tiger for any tax charges (or other tax) that Metal Tiger incurs on the disposal of the Additional Pre-IPO Shares up to a capped aggregate amount of A$30,000.

All other terms of the Subscription Agreement remain in place as previously announced on 2 September 2019. Under the Subscription Agreement, Metal Tiger has agreed to invest a minimum of A$2m at A$0.20 per share in the Cobre IPO which, assuming an increased fundraise of A$10m, will result in Metal Tiger's holding in Cobre increasing to 17.9% on Cobre's admission to trading on the ASX ("Admission"). In addition, Metal Tiger has the right to subscribe for additional shares under the Cobre IPO in its sole discretion, provided that its shareholding on Admission does not exceed 19.99% and Metal Tiger will forfeit its pre-IPO shares in Cobre (including the Additional Pre-IPO Shares) if it does not invest at least A$2m in the Cobre IPO. It is the current intention of the Board to invest the full A$2.4m in the Cobre IPO to go to 19.99%. Michael McNeilly has also been appointed as a director to the Cobre Board.

Update on Cobre IPO

Cobre currently expects that the prospectus for its IPO will be finalised and lodged with the Australian Securities and Investments Commission in early December 2019, with the offer period to open around mid-December 2019. Cobre further expects that the IPO will close in early January 2020, with Admission shortly thereafter. These timeframes are indicative only at this stage and may be subject to change without notice.

Michael McNeilly, Chief Executive Officer of Metal Tiger, commented:

"The Board is very pleased with the speed at which the team and advisers of Cobre have worked to progress the planned IPO on the ASX following our initial investment in September. The Board is delighted to be able to assist Cobre as it seeks to attract further investment and to ensure that there is adequate allocation for other investors to enable Cobre to take more capital if needed, and to accommodate the expected high demand for the Cobre IPO."

For further information on the Company, visit: www.metaltigerplc.com:

Michael McNeilly  (Chief Executive Officer)   Tel: +44 (0)20 7099 0738 
Mark Potter       (Chief Investment Officer) 
Richard Tulloch   Strand Hanson Limited       Tel: +44 (0)20 7409 3494 
James Dance       (Nominated Adviser) 
Jack Botros 
Paul Shackleton   Arden Partners plc          Tel: +44 (0)20 7614 5900 
Steve Douglas     (Broker) 
Gordon Poole      Camarco                     Tel: +44 (0)20 3757 4980 
James Crothers    (Financial PR) 
Monique Perks 

Notes to Editors:

Metal Tiger plc is admitted to the AIM market of the London Stock Exchange AIM Market ("AIM") with the trading code MTR and invests in high potential mineral projects with a base, precious and strategic metals focus.

The Company's target is to deliver a high return for shareholders by investing in significantly undervalued and/or high potential opportunities in the mineral exploration and development sector. Metal Tiger has two investment divisions: Direct Equities and Direct Projects.

The Direct Equities Division invests in undervalued natural resource companies. The majority of its investments are listed on AIM, the TSX and the ASX, which includes its 3.5% interest in Sandfire Resources NL (ASX: SFR). The Company also considers selective opportunities to invest in private natural resource companies, typically where there is an identifiable path to IPO. Through the trading of equities and warrants, Metal Tiger seeks to generate cash for investment in the Direct Projects Division.

The Direct 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 through its interest in Kalahari Metals Limited. In Spain, the Company has tungsten and gold interests in the highly mineralised Extremadura region. In Thailand, Metal Tiger has interests in two potentially near-production stage lead/zinc/silver mines as well as licences, applications and critical historical data covering antimony, copper, gold, lead, zinc and silver opportunities.

The Company actively assesses new investment opportunities on an on-going basis and has access to a diverse pipeline of new opportunities in the natural resources and mining sectors. For pipeline opportunities deemed sufficiently attractive, Metal Tiger may invest in the project or entity by buying publicly listed shares, by financing privately and/or by entering into a joint venture.

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(END) Dow Jones Newswires

November 20, 2019 03:24 ET (08:24 GMT)

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