MTR.L Share News (MTR)

(Sharecast News) - Metal Tiger announced on Wednesday that Kalahari Metals (KML), in which it owned 50% of the issued share capital, has entered into a binding agreement with Resource Exploration and Development (RED) to purchase 100% of Kitlanya.The AIM-traded firm said after completion, Metal Tiger's interest in KML will be diluted to about 43.9%.It explained that Kitlanya is a 100% subsidiary of RED, and was previously subject to an earn-in agreement.The parties had now agreed to terminate the earn-in agreement and had executed a conditional share purchase agreement on similar terms.KML had completed $0.1m of exploration works on the licences held by Kitlanya, and would acquire 100% of Kitlanya for $0.7m, satisfied by the issue of shares representing around 13.4% of KML as enlarged by the acquisition.The transaction would value KML, post completion, at $5.2m.Metal Tiger said the Kitlanya licences comprised five recently-granted exploration licences and covered approximately 4,651 square kilometres of "well-located" exploration tenure in the prospective Kalahari Copper Belt.The acquisition would increase KML's direct land position in the Kalahari Copper Belt to around 8,594 square kilometres.It said the acquisition was conditional on approval of the change of control of Kitlanya being granted by the authorities in Botswana, and receipt of an updated letter of good standing for the licences.The five licences had been divided into two project areas, namely Kitlanya West and Kitlanya East.Metal Tiger said it intended to provide further funding to KML to support its drilling in the second quarter of 2019, with further announcements set to be made."We are delighted that KML has reached an agreement to acquire Kitlanya, which will consolidate its highly prospective exploration interests in the Kalahari Copper Belt," said Metal Tiger chief executive officer Michael McNeilly."We intend to demonstrate our continued support for KML and its activities in Botswana through the provision of further funding in due course."