LONDON (Alliance News) - Metal Tiger PLC on Friday said it has invested a further USD1.1 million into Botswana-focused explorer, Kalahari Metals Ltd, in which it currently owns 50%.
The AIM-listed company said the investment will come from existing cash.
The additional USD1.1 million investment will provide full funding for Kalahari Metals to complete its planned first round drilling at both the Ngami and Okavango copper projects, both in Botswana.
Metal Tiger said the cutting of access tracks for the 2,100 metres diamond drill programme started on Monday, with mobilisation of drill rigs planned in the next week.
Metal Tiger will be issued with shares in Kalahari Metals so its stake rises to 60%. However, the company noted this will reduce to 53% upon completion of Kalahari Metals' purchase of Kitlanya Ltd.
In mid-April, Metal Tiger said Kalahari Metals has completed USD100,000 of exploration works on the licences held by Kitlanya and will acquire Kitlanya for USD700,000, via the issue of shares representing 13% of Kalahari Metals.
"We are delighted Kalahari Metals is now fully funded to commence the first round of drilling at the Ngami and Okavango copper projects and we look forward to initial drill results," said Metal Tiger Chief Executive Michael McNeilly.
He added: "This additional funding will also allow Kalahari Metals to plan further work programs over its licence holdings."
Shares were 0.8% lower on Friday morning at a price of 1.26 pence each.
Early on Friday Metal Tiger swung to loss in 2018 on the poor performance of a portfolio company.
The company, which invests in mineral explorers and developers, posted a pretax loss of GBP4.0 million in 2018 compared to GBP347,000 profit reported a year earlier. Metal Tiger recorded a GBP511,000 loss on disposal of investments versus GBP3.9 million gain in 2017.
Meanwhile, the company's NAV grew 6% to 1.40 pence as at December 31 from 1.33p reported at the end of 2017.