(Alliance News) - Metal Tiger PLC on Wednesday reported a rise in net assets in the first half of the year but said no mining investments have reached production yet, while the board of its investee MOD Resources Ltd has recommended a takeover offer.
The firm reported net assets at June 30 of GBP26.7 million, up 41% from GBP19.0 million from at the end of December. Per share, it rose by 22% to 1.71 pence from 1.40p.
The company's stock was trading 6.7% higher at 1.28p apiece in London on Wednesday afternoon.
Metal Tiger swung to a pretax profit of GBP4.5 million during the period, compared with a GBP5.0 million loss in the first half of 2018. The company recorded a net GBP6.3 million gain on investments during the period, compared with a GBP3.4 million net loss in the first six months of last year.
The company's current London-listed investments include MOD Resources, Thor Mining PLC and Greatland Gold PLC.
Metal Tiger said: "No mining companies in the investment portfolio are currently at production stage. The portfolio is therefore considered high risk as the future value of investments is often dependent on financing and/or exploration success."
Looking ahead, Metal Tiger said it would support Sandfire Resources NL's takeover offer of MOD Resources. Metal Tiger's stake in MOD Resources is valued at AUD42.7 million, roughly USD28.9 million.
MOD Resources in June was subject to a AUD167 million, takeover offer from Australian copper-gold producer Sandfire. Under the terms, Sandfire would acquire 100% of MOD Resources by way of a scheme of arrangement, valued at AUD0.45 per MOD share.
On Wednesday, MOD said 159 shareholders, holding 101.2 million shares, made a cash election for a total consideration of USD45.5 million, above the agreed cap of USD41.6 million.
MOD said: "Accordingly, it is expected that shareholders who have made a cash election will have their cash consideration scaled back on a pro-rata basis so that the total amount of cash consideration payable equals the maximum cash consideration and the remainder of the consideration will be payable to those shareholders in Sandfire shares."
A general meeting where MOD shareholders will vote on the Sandfire takeover scheme will take place on October 1.
Shares in MOD Resources were untraded in London on Wednesday afternoon, last quoted at 22.75p each.
By Eric Cunha; ericcunha@alliancenews.com
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