(Alliance News) - Metal Tiger PLC on Monday said investee Southern Gold Ltd has slimmed a fundraise due to market conditions.
Southern Gold, as resources investor Metal Tiger said in February, had planned an AUD10 million share placing.
However, this has now been reduced to AUD4 million. Metal Tiger has taken 22 million of the 40 million shares on offer for AUD2.2 million, about GBP1.1 million.
Following this, Metal Tiger will hold a 17% stake in Southern Gold.
"We are delighted to have cornerstoned this revised placing; the fact that Southern Gold has been able to restructure the fundraise in such challenging markets is a testament to the quality of the Southern Gold team and its assets," said Metal Tiger Chief Executive Michael McNeilly.
"In addition, our participation in the fundraise demonstrates our continued ability to seek and finance opportunities globally and across commodities in uncertain markets. We believe Southern Gold's drilling campaign, which will include significant news flow over a 12-month period, is a high-impact opportunity and is another example of our board identifying unique opportunities in order to drive shareholder value."
"We look forward to progress being achieved and to updating shareholders on further developments across our portfolio in the near future," the firm added.
Metal Tiger shares ended 9.7% higher on Monday in London at 0.85 pence each.
By George Collard; georgecollard@alliancenews.com
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