TIDMMTR
20 May 2020
Metal Tiger plc
("Metal Tiger" or the "Company")
Completion of Further Financing Arrangement
Metal Tiger plc (AIM:MTR), the London Stock Exchange AIM listed
investor in natural resource opportunities, is pleased to announce
that, further to the Company's announcement of 17 December 2019, it
has entered into a further equity derivative collar financing
arrangement (the "Further Financing Arrangement") with the Lender
pursuant to the Umbrella Facility.
The Further Financing Arrangement is secured over, in aggregate,
328,798 Sandfire Shares held by Metal Tiger, representing
approximately 0.18% of Sandfire's issued share capital.
Under the terms of the Further Financing Agreement Metal Tiger
has:
1. entered into a stock lending arrangement with the Lender, pursuant to
which the Lender (or an affiliate of the Lender) can borrow up to, in
aggregate, 328,798 Sandfire Shares from Metal Tiger;
2. obtained the right (but not the obligation) to sell 63,045 and/or 265,753
Sandfire Shares to the Lender in three years' time at 80% of the
reference price, being A$4.40 and A$4.45 respectively (subject to
customary adjustments) (the "Reference Prices") (each a "Put");
3. granted the Lender the right (but not the obligation) to buy 63,045
and/or 265,753 Sandfire Shares from Metal Tiger in three years' time at
an agreed premium of 145% of the respective Reference Price (each a
"Call"); and
4. borrowed, in aggregate, A$1,168,000 from the Lender secured on the
combination of the above with a maturity date of 18 May 2023 (the
"Further Loan").
Metal Tiger has the right to elect to settle the Put and the
Call by way of physical delivery of Sandfire Shares or by way of a
cash payment reflecting the value of the respective Put and Call at
the time.
Costs of approximately A$0.168m associated with the Further
Financing Arrangement (inclusive of all interest obligations and
the net cost of the equity derivative collar for the term of the
Further Financing Arrangement) have been deducted from the
aggregate Further Loan proceeds, resulting in Metal Tiger
receiving, in aggregate, A$1.0m of cash proceeds to fund:
-- A near term substantial investment opportunity; and
-- Other potential investment opportunities.
Metal Tiger can agree with the Lender to utilise the balance of
Sandfire Shares held by it to increase the size of the financing
arrangement at a later date. Following the Further Financing
Arrangement, and together with the initial financing arrangement of
A$8.175m announced on 17 December 2019 (the "Initial Financing
Arrangement"), A$9.343m is outstanding pursuant to the Umbrella
Facility. If the total balance outstanding on 30 June 2020 is less
than A$20m, Metal Tiger will be required to pay a commitment fee to
the Lender. The maximum Commitment Fee payable by Metal Tiger is
A$118,254.
The Further Financing Arrangement and the Initial Financing
Arrangement, are secured over, in aggregate, 2,003,923 Sandfire
Shares held by Metal Tiger, representing approximately 1.125% of
Sandfire's issued share capital. Metal Tiger currently holds
6,366,990 Sandfire Shares.
Unless otherwise defined in this announcement, capitalised terms
shall have the same meanings as set out in the announcement of 17
December 2019.
Commenting on today's financing arrangements, Mr Michael
McNeilly, Chief Executive Officer of Metal Tiger, said:
"Recognising the recent rise in Sandfire's share price, the
Board has taken the proactive step of seeking to raise further
funds through the existing Umbrella Facility, in order to have the
flexibility to pursue high potential opportunities in current
market conditions that the Board believes have the potential to
outperform over the period of the financing arrangement. We look
forward to providing shareholders updates on future investments
opportunities as appropriate."
This announcement contains inside information for the purposes
of the market abuse regulation (EU No. 596/2014) ("MAR").
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 interest in Sandfire
Resources Limited (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/20200519006047/en/
CONTACT:
Metal Tiger plc
SOURCE: Metal Tiger plc
Copyright Business Wire 2020
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May 20, 2020 02:00 ET (06:00 GMT)
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