GRL/RNS28 Apr 2016 12:17
We own 33%:
STRATEGIC ACQUISITION - GOLDSTONE RESOURCES
Metal Tiger plc (LON:MTR) the London Stock Exchange AIM listed investor in strategic natural resource projects is pleased to announce the Company's participation in the acquisition of 12,013,173 shares of Goldstone Resources Ltd ("Goldstone Resources")(AIM:GRL) by the Company and Red Rock Resources plc ("Red Rock")(AIM:RRR) at a price of 1.87p per Goldstone Resources share.
The acquired shares total 19.29% of the issued share capital of Goldstone Resources, and upon completion of the acquisition Red Rock will acquire and own 6,006,587 GRL shares (9.645% of GRL) and MTR will acquire 6,006,586 shares (9.645% of GRL). Metal Tiger already owns 2,250,000 shares in Goldstone Resources, therefore following the additional acquisition Metal Tiger will own 8,256,586 shares representing 13.26% of Goldstone Resources.
Goldstone Resources is an exploration company with exploration skills that focus on West and Central Africa. The assets include the Homase/Akrokerri project adjoining and to the East and North of AngloGold Ashanti's Obuasi mine in the Ashanti Gold Belt in Ghana. The project has a JORC Mineral Resource of 602,000 oz of gold at 1.77 g/t. Other licenses are held in Gabon and Senegal.
The consideration for the acquisition is £225,000. Of this consideration £112,500 is payable in cash by Metal Tiger.
The balancing consideration of £112,500 is payable by Red Rock Resources and we would refer readers to their market announcement in this regard.
At the close of business on 27 April 2016 the price of GRL shares was 1.65 pence and the market capitalisation of GRL was £1.027m. In the six months to 30 June 2015 GRL reported pre-tax losses of £813,206 and net assets of £730,423.
Paul Johnson, Chief Executive Officer of Metal Tiger plc excluded himself from the decision to proceed with this acquisition being an existing holder of Goldstone Resources shares.
Terry Grammer, Chairman of Metal Tiger commented "We are pleased to announce the strategic acquisition of shares in another UK listed operating resource company. Metal Tiger continues to build its investment in low valuation clean operating vehicles and anticipates further transactions of this nature will be undertaken in the near future.