Metal Tiger plc (LON:MTR), the London Stock Exchange AIM listed investor in strategic natural resource opportunities, has today provided an update regarding the Company’s Joint Venture project with partner MOD Resources Limited (ASX:MOD) in the Kalahari Copper Belt in Botswana (70% MOD Resources/30% Metal Tiger).
Highlights:
- Assay results confirm outstanding copper intersection at A4 Dome, located 8km from T3 Project:
- Hole MO-A4-003D, down hole intersections:
- 52m @ 1.5% Cu & 14g/t Ag from 232m, including
- 15.5m @ 2.9% Cu & 42g/t Ag, from 269m
- 4.4m @ 5.3% Cu & 90g/t Ag from 280m, and
- 1.9m @ 2.5% Cu & 39g/t Ag from 367m
- Individual narrow (<1m) veins occur throughout the 52m intersection, ranging from 7.8% Cu, up to 15.4% Cu. The highest silver assay of 476g/t Ag is associated with 15.4% Cu at the base of the 52m intersection.
- Mineralisation is stockwork-type, hosted in a sandstone sequence and remains completely open at depth and along strike.
- At the A1 Dome 26km east of the A4 Dome, the second hole (MO-A1-002D), has intersected vein hosted bornite and is currently drilling through visible mineralisation.
Michael McNeilly Chief Executive Officer of Metal Tiger plc commented: “We are delighted to announce the outstanding assay results for hole MO-A4-003D on the A4 Dome. It is particularly exciting that the 52m intersection is reminiscent of the T3 Deposit discovery hole, back in March 2016 (52m @2% Cu and 32g/t Ag).
With a pipeline of drill targets identified from aerial electromagnetic geophysics in addition to those on the A4 Dome and A1 Dome, within the wider T3 Dome Complex, we are confident we have the potential for further T3 scale discoveries within the JV exploration holding.”
A4 Dome Drilling Update
- The circa 5km long A4 Dome is located 8km from the 60Mt T3 Pit Project and planned processing plant.
- The A4 Dome and the A1 Dome, together with the T3 Deposit, form part of the ~700km2 T3 Dome Complex.
- Additional MO-A4-003D assay results are currently awaited, for a potentially significant chalcocite zone, consisting a 6.3m interval of vein and disseminated chalcocite and bornite mineralisation at 587m down hole depth, at the prospective NPF contact, circa 290m below the vein stockwork.
- Assay results are also awaited for MO-A4-004D located 150m to the north of MO-A4-003D.
- The NPF contact hosts most of the resources in the eastern Kalahari Copper Belt, including the 100Mt @ 2% Cu ‘Zone 5’ underground resource planned to be developed by Cupric Canyon Capital, along strike from the T3 Dome Complex.
- Four drill rigs are now testing extensions to the vein stockwork and NPF contact mineralisation, at depth and along strike on 200m spaced sections. Additional drill rigs are being sourced to accelerate drilling along the axis of the A4 Dome.
A1 Dome Drilling Update
- MO-A1-002D, the second hole to test the large A1 Dome located 26km east of A4 Dome, has intersected approximately 4m of visible, vein hosted bornite up to the current depth of this hole at 194m.
- Two drill rigs are currently operating at the A1 Dome.
Placing of £3.45 million and minimum offering of approximately £1.15 million to clients and affiliates of the Sprott Group of Companies
Metal Tiger also announced a placing with UK institutional and high net worth investors at a price of 2.8p per share to raise gross proceeds for the company of circa £3.45 million.
The Company is further pleased to announce that it will complete a non-brokered private placement with certain affiliates and clients of the Sprott Group of Companies for a minimum of £1.148 million, on the same terms as the Placing.
The gross proceeds of the Placing and the Sprott Offering will total a minimum gross proceeds of £4.6m, and will be used to fund Metal Tiger’s portion of its commitment to its Joint Venture project with partners MOD Resources Limited (ASX:MOD) in the Kalahari Copper Belt in Botswana (30% Metal Tiger / 70% MOD Resources), to finance possible further investment in Kalahari Metals Limited (“KML”) in the same region, as well as for working capital and general corporate purposes.
Shareholders should note that the Sprott Offering is conditional on certain conditions being met before the closing date of 31 August 2018. If these conditions are not met by the Closing Date, the Sprott Offering may not occur and Metal Tiger may not raise the minimum £1.148 million. The Closing Date for the Sprott Offering may be changed upon the mutual agreement of Sprott and Metal Tiger.
Highlights of the Placing:
Placing of 123,216,595 new ordinary shares in Metal Tiger at a placing price of 2.8p per ordinary share (the “Placing Shares”) raising gross proceeds of approximately £3.45 million.
Issue of 123,216,595 warrants to subscribe for 123,216,595 new ordinary shares in Metal Tiger at an exercise price of 5p per warrant, within a 3year exercise period from the date of admission of the shares to trading.
Placing taken place at a circa 17% discount to the previous day closing price.
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.
Michael McNeilly Chief Executive Officer of Metal Tiger commented: “We are very pleased with the level of support from both UK and international investors in this fundraising. Sprott continue to support Metal Tiger, which is demonstrable of their belief in the Company and its investments. For investors wanting exposure to the highly prospective Kalahari copper belt in Botswana, Metal Tiger offers a unique way of gaining de-risked exposure in early and later stage development projects. This investment will allow the Company to further cement its position on the belt as we continue to deliver value to our shareholders.
I would like to thank all those existing and new investors who participated and we look forward to continuing to execute our strategy of investing in exciting companies and projects where significant value exists for our shareholders.”
Terms of the Sprott Offering:
Issue of 41,000,000 new shares of the Company at a fixed price of 2.8p per share
Issue of 41,000,000 warrants to subscribe for 41,000,000 new ordinary shares in Metal Tiger at an exercise price of 5p per warrant, within a 3 year exercise period
Metal Tiger may at its discretion, should the Sprott Offering be oversubscribed, elect to accept a larger fundraise than £1,148,000
The closing date of the Sprott Offering is expected to be on or around the 31 August 2018 and will be subject to certain conditions highlighted below
The Sprott Offering will be completed to accredited investors (as defined in National Instrument 45-106 Prospectus Exemptions) in all provinces of Canada, to accredited investors (as defined in section 501(a) of Regulation D in the United States) pursuant to an exemption from the registration requirements of Regulation D of the United States Securities Act of 1933, as amended, and, with the consent of the Company, to suitable investors in other eligible foreign jurisdictions (other than Canada and the United States) pursuant to applicable private placement exemptions under applicable securities laws in such jurisdictions; provided that no prospectus, registration statement or similar document is required to be filed in such jurisdiction and the Company does not become subject to continuous disclosure obligations in such jurisdiction
The Offering is contingent upon the Closing Conditions being satisfactory results of corporate due diligence on Metal Tiger including favourable legal opinions of counsel to Metal Tiger in connection with corporate, securities and title matters (including a title opinion in respect of Metal Tiger’s material mineral properties on which the proceeds of the Offering are planned to be expended) as well as the execution of a Finder’s Agreement between the Company and certain affiliates of Sprott. The Offering will also be conditional upon regulatory and AIM approvals
A total of 123,216,595 Placing Shares are expected to be admitted to trading on or around 13 August 2018.
Following the issue of the Placing Shares, the number of ordinary shares in issue in the Company will increase to 1,254,173,209. For the purposes of the Financial Conduct Authority’s Disclosure and Transparency Rules (“DTRs”), the issued ordinary share capital of Metal Tiger following this allotment consists of 1,254,173,209 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.
