(Alliance News) - Metal Tiger PLC on Monday it is looking to raise AUD5.0 million, around GBP2.7 million, which will go towards the company's investments across global resources.
The Winchester, England-based natural resource investor will raise funds through a placing on the Australian Securities Exchange of 13.5 million CHESS depositary interests at a price of 0.37 cents per CDI.
The placing will be conducted in two tranches, the first being for 10.8 million CDIs, and the second for 2.7 million CDIs, which Cobre Ltd - in which Metal Tiger holds a 17% interest - intends to subscribe for.
The second tranche is conditional on gaining shareholder approval at an upcoming meeting in August.
Shares in Metal Tiger were down 14% at 22.47 pence on Monday in London. In Sydney, the company closed at 0.50 cents, meaning the placing reflects a 26% discount.
At the same time, Metal Tiger will issue 13.5 million ordinary shares to its CHESS sponsor Link Asset Services.
The placing is also expected to add additional liquidity to Metal Tiger's ASX quotation, and allow the company to increase its presence in the Australian market.
"Metal Tiger is very pleased to welcome a number of new sophisticated and institutional investors to the register and recognises the continued strong support from our existing shareholders," said Chief Executive Officer Michael McNeilly.
"The placing enables Metal Tiger to make further strategic investments in the global resources sector in line with our various investment strategies. In addition, the placing is expected to facilitate additional liquidity to the ASX quotation and assist Metal Tiger in establishing an increased presence in Australia," McNeilly added.
Following the first tranche, Metal Tiger will have 166.7 million shares issued overall in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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