TIDMMTR
2 September 2019
Metal Tiger plc
("Metal Tiger" or the "Company")
Completion of Cobre Agreement & Perrinvale Operational
Update
Metal Tiger plc (LON:MTR), the London Stock Exchange AIM listed
investor in strategic natural resource opportunities, is pleased to
announce that, following its announcements of 26 July 2019 and 27
August 2019, the Company has entered into a binding subscription
agreement (the "Subscription Agreement") with Cobre Pty Ltd
("Cobre"), pursuant to which Metal Tiger will initially subscribe
for 6,600,000 ordinary shares in Cobre for A$500,280, representing
in aggregate approximately 15% of Cobre's enlarged issued share
capital (the "Initial Investment").
Further to the Initial Investment, subject to the fulfilment of
certain conditions Metal Tiger has agreed to invest a further
A$2,000,000 for an aggregate 19.99% shareholding. Metal Tiger will
also have a right to appoint a nominee director to the Board of
Cobre as part of a future planned IPO on a recognised stock
exchange, which is expected to conclude within 12 months. Further
details on the Subscription Agreement are set out below.
Furthermore, the Company is pleased to provide an operational
update regarding recent progress made on the Perrinvale copper
project ("Perrinvale" or the "Perrinvale Project") in central
Western Australia, in which Cobre has an 80% interest.
Highlights
-- Airborne Electromagnetic ("AEM") geophysical survey contractor
has mobilised to the Perrinvale Project site
-- AEM survey will cover an area of approximately 114km2
covering a 22km strike length of the Panhandle Greenstone Belt,
where
at least eight potential base metal targets have been
identified
-- Targets include the Schwabe prospect where, in June 2019, preliminary
reverse circulation ("RC") drilling confirmed high grade
volcanogenic massive sulphide ("VMS") style copper, zinc and
gold mineralisation, including:
-- Hole 19PVRC002
-- 5.0m @ 9.8% Cu, 3.2g/t Au, 34g/t Ag & 3.1% Zn from 50m
-- Processed survey data will be used to establish potential conductive
targets for additional drilling
-- The survey has commenced and is expected to take approximately one
week with processed survey data available for interpretation
during
September 2019
Michael McNeilly, Chief Executive Officer of Metal Tiger,
commented:
"We are delighted to have completed this investment into Cobre
and to see rapid progress being achieved at the world-class
Perrinvale copper project. The helicopter-borne electromagnetic
geophysical survey programme should help to accelerate the
identification of additional VMS style high-grade copper zinc gold
mineralisation within this highly prospective area. We see
significant follow-on potential at Perrinvale and look forward to
seeing this being realised in the months ahead."
AEM Geophysical Survey Details
The geophysical survey is being conducted by specialised
airborne geophysics contractor, New Resolution Geophysics
("NRG").
The survey will be flown on 149 survey lines at 150m
line-spacing and employ NRG's XciteT helicopter-borne time-domain
electromagnetic ("HTDEM") system, with an along-line resolution of
up to 0.5m with soundings from near surface up to 300m depth.
Preliminary Ground Geophysics and Drilling Programme
During March 2019, a first pass ground electromagnetic ("EM")
geophysical survey was completed over parts of the Perrinvale
Project area considered prospective for VMS style mineralisation.
This work identified an initial eight widely-spaced geological
conductors up to 3km long which could be associated with VMS
mineralisation.
Three of the conductors were RC drilled in June 2019 as part of
a 1,000m preliminary exploration programme. The primary objective
of the drilling was to confirm the copper and zinc mineralisation
reported in the early 1970s at the Schwabe prospect, which contains
a copper gossan extending over 140m at surface.
In total, four areas were drilled, Schwabe plus three greenfield
areas identified by the ground EM survey. Three holes were drilled
at Schwabe, two to a 90m depth and one to 200m depth, with 1m
sample intervals.
As announced on 26 July 2019, assay results received for two
holes include hole 19PVRC002 which intersected 5.0m @ 9.8% Cu,
3.2g/t Au, 34.0g/t Ag & 3.1% Zn from 50m.
Background on Cobre and Perrinvale Project
Cobre is the 80% owner of Toucan, which holds a group of
tenements collectively referred to as the Perrinvale Project,
covering 382km2 in the Panhandle and Illaara Greenstone Belts, in
central Western Australia. The Perrinvale Project was previously
owned by Fortescue Metals Group Limited ("FMG") and includes three
prospects, called Schwabe, Zinc Lago and Ponchiera, where FMG
retains a 2% net smelter royalty on future copper production.
The Perrinvale Project area is located around Lake Barlee, which
is northwest of Menzies and Kalgoorlie, and directly adjacent to
the Goldfields Highway. The exploration was initially focused on
known gold mineralisation in the area. However, a detailed review
of historical work and ground reconnaissance suggested that part of
the Perrinvale Project area was highly prospective for base metals
as well. Under the acquisition terms, Cobre provided funds to
Toucan to undertake the initial ground EM geophysical surveys,
conducted in March 2019, and preliminary RC drilling, conducted in
June 2019, in exchange for 80% of Toucan and 20% of Cobre's
equity.
Pre-IPO and IPO Cornerstone Term Sheet
Metal Tiger has made an initial payment of A$500,280 to Cobre in
consideration for being issued with 6.6 million new ordinary shares
(the "Initial Securities") in the capital of Cobre at an issue
price of A$0.0758 per security, representing in aggregate
approximately 15% of the issued share capital of Cobre.
In addition, subject to the fulfilment of certain conditions,
Metal Tiger has also agreed to subscribe for, and Cobre (or its
listed nominee) (the "Cobre IPO Entity") has agreed to issue up to
10,000,000 new ordinary shares in the capital of the Cobre IPO
Entity (the "IPO Shares") under the proposed initial public offer
of IPO Shares in conjunction with an application for the quotation
of those IPO Shares on a recognised stock exchange, provided that
the offer period for the IPO commences within 12 months after the
date on which the Subscription Agreement was executed (or such
later date as agreed between the parties in writing). The
Subscription Agreement stipulates a minimum IPO fundraise by the
Cobre IPO Entity of A$8,000,000 and a maximum of A$15,000,000.
A condition of the issue of the IPO Shares is that Metal Tiger
will hold 19.99% of the ordinary shares in the Cobre IPO Entity and
will not be required to pay more than A$2,500,280 (in aggregate)
pursuant to the subscription for the Initial Securities and IPO
Shares.
Should the IPO occur within the prescribed 12-month period from
execution of the Subscription Agreement but Metal Tiger does not
invest the committed A$2,000,000 to subscribe for the IPO Shares,
then the Initial Securities will be forfeited and cancelled for no
consideration by appropriate means.
As a condition of the subscription for the IPO Shares, Metal
Tiger will be entitled to nominate a director to the Board of the
Cobre IPO Entity, with the details of such nominated director to be
included in the IPO prospectus.
Should Cobre raise more than A$700,000 by way of equity
investment, including by way of an issue of convertible securities,
from any person other than Metal Tiger before the IPO then the
Initial Securities cannot be redeemed or cancelled for failure to
pay the IPO subscription amount. Any equity investment before any
IPO will not impact Metal Tiger's right to hold 19.99% of Cobre
following an IPO for a total investment of, in aggregate,
A$2,500,280 (including the consideration for the Initial
Securities).
Metal Tiger and the shareholders of Cobre have entered into a
drag & tag deed containing standard protections typically seen
in these types of agreements.S
The technical information contained in this disclosure has been
read and approved by Mr Nick O'Reilly (MSc, DIC, MAusIMM, FGS), who
is a qualified geologist and acts as the Competent Person under the
AIM Rules - Note for Mining and Oil & Gas Companies.Mr O'Reilly
is a Principal consultant working for Mining Analyst Consulting
Ltd, which has been retained by Metal Tiger to provide technical
support.
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
Nick Emerson SI Capital (Broker) Tel: +44 (0)1483 413 500
Gordon Poole Camarco (Financial PR) Tel: +44 (0)20 3757 4980
James Crothers
Monique Perks
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 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. The Company's key strategic objective is to ensure the
distribution to shareholders of major returns achieved from
disposals. Metal Tiger has two investment divisions: Direct
Equities and Direct Projects.
The Direct Equities division invests in undervalued natural
resource companies listed on AIM, the ASX and the TSX, which
includes its 10.48% interest in MOD Resources Limited ("MOD").
Through the trading of equities and warrants, Metal Tiger seeks to
generate cash for investment in the Direct Projects division.
Metal Tiger's Direct Projects division is focused on the
development of its key project interests in Botswana, Spain and
Thailand. In Botswana, Metal Tiger, through its JV with MOD and its
interest in Kalahari Metals Limited, has a growing interest in the
large and highly prospective Kalahari copper/silver belt. 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.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20190902005063/en/
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(END) Dow Jones Newswires
September 02, 2019 04:43 ET (08:43 GMT)
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