Metal Tiger PLC (LON:MTR), the London Stock Exchange AIM listed investor in strategic natural resource opportunities, has today announced a strategic financing and agreement has been secured with Thor Mining plc (LON:THR). Thor has a highly prospective and exciting portfolio of exploration and development projects across tungsten, copper and lithium.
Highlights:
- Metal Tiger to invest £300,000 in Thor through a subscription for 10,000,000 new ordinary shares at 3p per share and at a 20% premium to the previous day’s closing share price of Thor on AIM (2.5p on 22 January 2018);
- Money raised will be applied to the advancement of key Thor projects including Molyhil, Pilot Mountain and Kapunda Copper;
- For each subscription share Metal Tiger will also receive one warrant to subscribe for one new ordinary share in Thor at 5p per share with a two-year maximum exercise life;
- Should the share price of Thor exceed a 14p volume weighted average price for 5 consecutive business days, Thor may, at its sole discretion, seek accelerated conversion of the warrants secured by Metal Tiger. In the event that Metal Tiger does not convert upon receipt of this request, Metal Tiger would forfeit its rights to the warrants;
- Metal Tiger, reflective of the premium price paid for Thor stock, will receive a 90 day right of first refusal to participate in any new joint venture, acquisition or similar transaction undertaken by Thor during this period;
- The right of first refusal shall not automatically include any current discussions or negotiations with third parties in relation to existing Thor projects held or projects already under review, however Thor may extend an invitation to Metal Tiger to participate should this be considered appropriate to all parties.
Following this issuance, Metal Tiger will be interested in 61,350,000 ordinary shares of Thor which following admission to trading will represent 9.94% of the issued share capital of Thor.
For the year end 30 June 2017 Thor Mining plc reported an audited net loss of £1,283,000 and as at 30 June 2017 had audited net assets of £9,910,000.
Michael McNeilly, Chief Executive Officer of Metal Tiger plc, commented:
“Metal Tiger is a financially robust and proactive natural resource investing business looking for new opportunities to deploy capital into companies and projects with considerable upside potential. We are delighted to increase our position through this strategic financing.
We consider the size, potential and scalability of Thor’s key projects to be of significant interest and that the current valuation placed on Thor offers considerable upside potential for investors.
We look forward to working with Thor to assess commercialisation opportunities.
Metal Tiger remains highly engaged on its current key projects in Botswana and Thailand and will continue to innovate on the investing arm to bolster its balance sheet with a view to minimise dilution for investors as it funds its 30% joint venture interest in Botswana and covers minimal monthly costs in Thailand whilst progress is awaited on key regulatory matters.”
