Metal Tiger Plc (LON:MTR), the natural resources investing company,has today announced that, further to the announcement on 6 August 2018, the Sprott Offering has closed oversubscribed, raising gross proceeds for the Company of approximately £2.6 million.
In aggregate, the Company has raised total gross proceeds of £6.132 million from the Sprott Offering and the Placing announced on 6 August 2018. This represents the largest fundraise by the Company to date.
The proceeds of the Fundraising will be used to fund Metal Tiger’s portion of its commitment to 2018 budget for its Joint Venture project with partners MOD Resources Limited (ASX:MOD) in the Kalahari Copper Belt in Botswana (30% Metal Tiger / 70% MOD Resources), for its commitment to its recently acquired Joint Venture with Kalahari Metals Limited in the same region, as well as for working capital and general corporate purposes.
Highlights of the Sprott Offering:
- Issue of 93,425,714 new ordinary shares in Metal Tiger at a subscription price of 2.8p per ordinary share (the “Placing Shares”) raising gross proceeds of £2,615,920;
- Issue of 93,425,714 warrants to subscribe for 93,425,714 new ordinary shares in Metal Tiger at an exercise price of 5p per warrant, within a 3 year exercise period (“Warrants”);
- Placing undertaken with new and existing Metal Tiger shareholders;
- Funding to augment existing underlying working capital underpinning the Company’s joint ventures in its Metal Projects division, with a specific focus on the Company’s Botswanan exploration projects; and
- Sprott Capital Partners, a division of Sprott Private Wealth LP and Sprott Global Resource Investments, Ltd. were engaged as finders to Metal Tiger in the Sprott Offering.
In addition, the Company has accepted a further subscription for new shares from a London based investor of £15,000 on the same terms as the Placing.
The 93,425,714 new ordinary shares to be issued pursuant to the Sprott Placing and the Further Subscription are expected to be admitted to trading on AIM on or around 6 September 2018. Exploration Capital Partners has participated for 37,395,942 new ordinary shares bringing its total holding post issue to 137,395,942 ordinary shares representing circa 10.18% of the issued share capital of the Company.
Following the issue of the new ordinary shares, the number of ordinary shares in issue in the Company will increase to 1,349,956,065. For the purposes of the Financial Conduct Authority’s Disclosure and Transparency Rules, the issued ordinary share capital of Metal Tiger following this allotment consists of 1,349,956,065 ordinary shares with voting rights attached (one vote per share). There are no shares held in treasury. This total voting rights figure may be used by shareholders as the denominator for the calculation by which they will determine whether they are required to notify their interest in, or a change to their interest in, Metal Tiger under the DTRs.
Unless otherwise defined, all capitalised terms in this announcement have the meaning given to them in the announcement made by the Company on 6 August 2018.
Michael McNeilly Chief Executive Officer of Metal Tiger plc commented: “The Board and I are extremely pleased to have raised an additional £2.6m from the Sprott Offering raising more than double the minimum commitment from Sprott. This brings the total amount raised on the same terms to circa £6.13m. This fundraise is the single largest investment in Metal Tiger to date and was done at a price which was significantly higher than MTR’s average price over the course of 2018.
The continued institutional support along with the support from London means that Metal Tiger is now exceptionally well positioned to advance its many investments, in particular, its Joint Venture with MOD Resources and its investment Kalahari Metals. We believe that there is significant upside in exploration in the Kalahari Copperbelt and we believe MTR is uniquely positioned to benefit from any future exploration success”
