3rd RNS13 Jul 2020 13:44
METAL TIGER PLC: Completion of Fourth Financing Arrangement
13/07/2020 12:37pm
UK Regulatory (RNS & others)
Metal Tiger (LSE:MTR)
Intraday Stock Chart
Monday 13 July 2020
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13 July 2020
Metal Tiger plc
("Metal Tiger" or the "Company")
Completion of Fourth Financing Arrangement
Metal Tiger plc (AIM:MTR), the London Stock Exchange AIM listed investor in natural resource opportunities, is pleased to announce that, further to the Company's announcements of 17 December 2019, 20 May 2020 and 9 June 2020, it has entered into a further equity derivative collar financing arrangement (the "Fourth Financing Arrangement") with the Lender pursuant to the Umbrella Facility.
The Fourth Financing Arrangement is secured over, in aggregate, 280,141 Sandfire Shares held by Metal Tiger, representing approximately 0.16% of Sandfire's issued share capital.
Under the terms of the Fourth Financing Arrangement, Metal Tiger has:
1. entered into a stock lending arrangement with the Lender, pursuant to
which the Lender (or an affiliate of the Lender) can borrow up to, in
aggregate 280,141 Sandfire Shares from Metal Tiger;
2. obtained the right (but not the obligation) to sell 93,536 and/or 186,605
Sandfire Shares to the Lender in three years' time at 80% of the
reference price, being A$5.203 and A$5.216 respectively (subject to
customary adjustments) (the "Reference Price") (each a "Put");
3. granted the Lender the right (but not the obligation) to buy 93,536
and/or 186,605 Sandfire Shares from Metal Tiger in three years' time at
an agreed premium of 145% of the respective Reference Price (each a
"Call"); and
4. borrowed, in aggregate, A$1.168m from the Lender, secured on a
combination of the above with a maturity date of 10 July 2023 (the
"Further Loan").
Metal Tiger has the right to elect to settle the Put and the Call by way of physical delivery of Sandfire Shares or by way of a cash payment reflecting the value of the respective Put and Call at the time.
Costs of approximately A$0.168m associated with the Fourth Financing Arrangement (inclusive of all interest obligations and the net cost of the equity derivative collar for the term of the Third Financing Arrangement) have been deducted from the aggregate Further Loan proceeds, resulting in Metal Tiger receiving A$1.0m of cash proceeds. The net proceeds will be used to fund potential investment opportunities.
Metal Tiger can agree with the Lender to utilise the balance of Sandfire Shares held by it to increase the size of the financing arrangement at a later date. Following the Fourth Financing Arrangement, and together with the Initial Financing Arrangement, the Second Financing Arrangement and the Third Financing Arrangement (as announced on 17 December 2019, 20 May 2020 and 09 June 2020 respec