LONDON (Alliance News) - Metal Tiger PLC said on Thursday it will be focusing on investing in natural resource projects, and make its metal projects division the centre of its operations, after conducting a strategic and operational review into its activities.
The natural resources investment company said it had decided to split its company into two divisions, Metal Projects and Assets Trading, with Metal Projects become the main focus of the company. This comprises of its direct investments in holding companies for project operations on the ground and in natural resource projects at or near the bottom of the cyclical sector downturn.
It said as such, it would only be reporting on its Asset Trading division, which encompasses its equity, warrant and royalty trading, during the full and half year results. It added it would continue to trade in this division, however, to generate profits for reinvestment.
Metal Tiger added "the time is now right to make new acquisitions and develop new interests", saying its first objective would be the acquisition of high potential key strategic metals projects. It is using proceeds from fundraising undertaken in 2015 and 2016, such as the selling of its stake in ECR Minerals on Wednesday.
"The purpose of this strategic review is to change the market's perception of our business in this regard and ensure that future investor focus is on our larger projects, from which we see the biggest opportunity for gains to be made, particularly as the mineral sector recovers from its extended declines over recent years," said Chief Executive Paul Johnson.
Metal Tiger shares were down 6.4% at 1.17 pence on Thursday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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