(Alliance News) - Natural resources investor Metal Tiger PLC has put a further USD1.5 million into Botswana-focused explorer Kalahari Metals Ltd, it said on Friday.
Metal Tiger will hold just over 62% of Kalahari following the investment, which has also included the granting of a 2% net smelter royalty over all of Kalahari's licences. This does not include the five licences held by Triprop Holdings Pty Ltd, in which Kalahari owns 51%.
The royalties will be ended if Metal Tiger invests at a lower valuation than Friday's investment capped at USD500,000, meaning any future investment up to USD500,000 must be made on at least the same terms as the one announced Friday.
Kalahari will use the proceeds to fund further exploration drilling at the Kitlanya East, Okavango, and Kitlanya West projects on the Kalahari copper belt in Botswana.
"This investment will allow the Kalahari team to progress exploration and prove up other targets at Kitlanya East, Kitlanya West, and Okavango, and also increases Metal Tiger's exposure to the highly prospective Kalahari copper belt," said Metal Tiger's Chief Executive Michael McNeilly.
"In the context of our expectation of an increasing global requirement for copper production, and therefore exploration, we expect the Kalahari copper belt to become an increasingly more valuable area to be situated and are delighted to increase our interest in the area."
Shares in Metal Tiger were 1.6% lower on Friday morning in London at 1.50 pence each.
By George Collard; georgecollard@alliancenews.com
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