TIDMMTR
Metal Tiger plc
("Metal Tiger" or the "Company")
Cobre Update: Acquisition of remaining 20% of Toucan and Further
Investment by Metal Tiger
Metal Tiger plc (AIM:MTR), the London Stock Exchange AIM listed
investor in natural resource opportunities, is pleased to provide
an update in relation to its investment in Cobre Limited (ASX: CBE)
("Cobre").
Cobre has today announced that it has entered into a legally
binding Letter of Intent ("LOI") with the two minority shareholders
(the "Vendors") of Cobre's 80% owned subsidiary, Toucan Gold Pty
Ltd ("Toucan"), to acquire the remaining 20% of shares in Toucan
that Cobre does not already own (the "Transaction").
Metal Tiger has also conditionally agreed to invest an
additional A$310,000 into Cobre (the "MTR Investment"), by way of a
subscription for new ordinary shares in Cobre ("Cobre Shares"),
subject to certain conditions being met, to maintain its pro-rata
shareholding in Cobre.
Highlights and Key Transaction Terms:
-- Following completion of the Transaction, Cobre will hold 100% of the
shares in Toucan;
-- Toucan is the 100% owner of the nine tenements comprising Cobre's
flagship Perrinvale project in Western Australia ("Perrinvale");
-- Consideration for the remaining Toucan shares will be satisfied by way of
a cash payment of A$527,900 and 6,160,000 new Cobre Shares at a deemed
consideration price of A$0.20 per share; and
-- 100% ownership of Toucan provides Cobre with complete control over
Perrinvale and the ability to make key strategic decisions independently.
Conditions Precedent:
The Transaction is subject to a number of Conditions Precedent
("CPs") including:
-- Cobre and the Vendors (together, the "Parties") negotiating and executing
a share purchase agreement to more fully record the terms of the
Transaction;
-- Any other conditions that Cobre or ASX deems necessary being satisfied in
order to ensure compliance with ASX listing rules or the Corporations Act
2001 (Cth);
-- The Parties agreeing to work in good faith and use their best endeavours
to satisfy the CPs as soon as possible but by no later than 30 June 2020;
and
-- If any CP has not been satisfied by 30 June 2020, Cobre may elect to
terminate the agreement and not proceed with the Transaction.
The MTR Investment
Metal Tiger has conditionally agreed to invest a further
A$310,000, at Cobre's IPO price of A$0.20 per share, resulting in
the issue of 1,550,000 new Cobre Shares. The MTR Investment is
conditional on completion of the Transaction and, as Metal Tiger is
a substantial shareholder and has Board representation, also
requires the approval of Cobre shareholders, with such approval to
be sought at the Company's Annual General Meeting to be held later
this year. Assuming completion of the Transaction and shareholder
approval of the MTR Investment, Metal Tiger will be interested in
20,900,000 Cobre Shares, which, assuming no further shares are
issued by Cobre, would result in Metal Tiger maintaining its 19.99%
interest in the company.
Further details of the Transaction can be found in Cobre's
release at the following link:
https://www.asx.com.au/asxpdf/20200428/pdf/44h9mr26qszlln.pdf
Michael McNeilly, Chief Executive Officer of Metal Tiger plc,
commented:
"It is pleasing to see Cobre move to 100% ownership of
Perrinvale through this accretive transaction. We believe
Perrinvale has the potential to represent a highly strategic asset
in the future copper market and, through this deal, we will have an
increased effective interest in the project and maintain our
significant shareholding in Cobre. We look forward to seeing future
developments."
Background information on Cobre
Cobre, an Australian public company that was incorporated on 18
May 2018, is seeking to create shareholder value through the
successful exploration of base metal projects.
Cobre's subsidiary, Toucan, holds a group of tenements
collectively referred to as the Perrinvale Project in central
Western Australia. Michael McNeilly, Chief Executive Officer of
Metal Tiger, is a Non-Executive Director on the Board of Cobre.
As at 31 December 2019, Cobre reported net assets of A$1.1m. For
the period ended 31 December 2019, Cobre reported a loss after tax
of A$1.2m.
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 (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
Hugo Liddy
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 3.64% 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, where Metal Tiger has a
growing interest in the large and highly prospective Kalahari
copper/silver belt through its interest in Kalahari Metals
Limited.
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/20200427005933/en/
CONTACT:
Metal Tiger plc
SOURCE: Metal Tiger plc
Copyright Business Wire 2020
(END) Dow Jones Newswires
April 28, 2020 02:07 ET (06:07 GMT)
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