TIDMMTR
23 March 2020
Metal Tiger plc
("Metal Tiger" or the "Company")
Southern Gold - A$4 Million Revised Fundraise
Metal Tiger plc (AIM: MTR), the London Stock Exchange AIM listed
investor in natural resource opportunities, notes that, further to
its announcements of 10 and 11 February 2020 regarding the
Company's participation in a conditional A$10 million share
placement by ASX-listed, Southern Gold Limited ("Southern Gold"),
Southern Gold has withdrawn the placement owing to market
conditions.
Southern Gold has instead offered an alternative opportunity for
a subscription of, in aggregate, 40,000,000 Southern Gold shares at
10c per share, to raise A$4 million before costs, to be settled in
two tranches (the "Revised Fundraise"). Metal Tiger has
participated in the Revised Fundraise through a subscription for,
in aggregate, 22,000,000 shares at a total cost of A$2.2
million.
The second tranche of the Revised Fundraise, equating to
A$1,831,999.80 million, is conditional upon Southern Gold
shareholder approval at a duly convened general meeting (expected
to be held in early May) ("Approval"). On completion of the first
tranche, which will occur shortly, Metal Tiger will receive
5,020,002 new ordinary shares in Southern Gold. Subject to
Approval, Metal Tiger will receive a further 16,979,998 new
ordinary shares in Southern Gold pursuant to the second
tranche.
Following completion of the Revised Fundraise, Metal Tiger will
hold a 17.1% interest in Southern Gold. In addition, Metal Tiger
will retain the right to nominate one director to the board of
Southern Gold for so long as it holds an interest in the company of
at least 10%. Under this provision, Metal Tiger Non-Executive
Director, Mr Terry Grammer, has been nominated and will join the
Southern Gold board following Approval.
The board of Southern Gold has committed to hold, within 3
months of completion of the Revised Fundraise, a strategic review
session which will be attended by members of the board (including
Terry Grammer and Douglas Kirwin) as well as senior management.
Assuming completion of the Revised Fundraise, Southern Gold will
have a cash balance of A$5.5 million, which is expected to support
diamond drilling of multiple targets over a minimum 12-month
period.
Southern Gold's announcement can be accessed via the following
hyperlink:
https://www.asx.com.au/asxpdf/20200323/pdf/44g8xqdbzr0878.pdf
For the year ended 30 June 2019, Southern Gold reported a loss
before tax of A$10.1 million. As at 31 December 2019, Southern Gold
reported net assets of A$8.6 million.
Michael McNeilly, Chief Executive Officer of Metal Tiger,
commented:
"We are delighted to have cornerstoned this revised placing; the
fact that Southern Gold has been able to restructure the fundraise
in such challenging markets is a testament to the quality of the
Southern Gold team and its assets. In addition, our participation
in the fundraise demonstrates our continued ability to seek and
finance opportunities globally and across commodities in uncertain
markets. We believe that Southern Gold's drilling campaign, which
will include significant news flow over a 12-month period, is a
high-impact opportunity and is another example of our Board
identifying unique opportunities in order to drive shareholder
value.
"We look forward to progress being achieved and to updating
shareholders on further developments across our portfolio in the
near future."
For further information on the Company, visit:
www.metaltigerplc.com
Enquiries:
Michael McNeilly (Chief Executive Officer) Tel: +44 (0)20 7099 0738
Mark Potter (Chief Investment Officer)
Richard Tulloch Strand Hanson Limited (Nominated Tel +44 (0)20 7409 3494
James Dance Adviser)
Jack Botros
Paul Shackleton Arden Partners plc (Broker) Tel: +44 (0)20 7614 5900
Steve Douglas
Gordon Poole Camarco (Financial PR) Tel: +44 (0)20 3757 4980
James Crothers
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 3.69% 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, Kalahari copper/silver belt
through its interest in Kalahari Metals Limited. In Thailand, Metal
Tiger has interests in two potentially near-production stage
lead/zinc/silver mines as well as license 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/20200323005193/en/
CONTACT:
Metal Tiger plc
SOURCE: Metal Tiger plc
Copyright Business Wire 2020
(END) Dow Jones Newswires
March 23, 2020 03:00 ET (07:00 GMT)
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