22 Oct 2019 08:33
22 October 2019
Metal Tiger plc
("Metal Tiger" or the "Company")
Participation in Thor Mining Placing
Metal Tiger plc (AIM:MTR), the London Stock Exchange AIM listed investor in strategic natural resource opportunities, announces that it has subscribed for 22,500,000 new ordinary shares in the capital of Thor Mining plc (AIM/ASX: THR) ("Thor"), for a consideration of £45,000, in the placing announced by Thor today (the "Placing").
Thor has placed, in aggregate, 255,000,000 new ordinary shares (the "Placing Shares"), raising £510,000, at a price of 0.2p. 141,666,667 of the Placing Shares are conditional upon shareholder approval being received at a general meeting of Thor shareholders (the "Conditional Placing Shares") (the "Conditional Placing"). Metal Tiger will subscribe for 10,515,464 Placing Shares in the unconditional placing (the "Tranche A Shares") and the remaining 11,984,536 in the Conditional Placing.
Metal Tiger's investment is approximately pro-rata to its existing shareholding in Thor and, following admission of the Tranche A shares, Metal Tiger will be interested in 84,565,464 Thor shares, representing approximately 9.04% of Thor's enlarged issued share capital prior to completion of the Conditional Placing. Assuming the Conditional Placing completes, Metal Tiger will then hold 96,550,000 Thor shares, representing approximately 8.97% of Thor's then enlarged issued share capital.
As set out in Thor's announcement, it intends to utilise the net proceeds from the Placing to fund the Molyhill and Bonya tungsten projects, as well as the In-Situ Copper Recover project in which Thor holds an interest through its 25% stake in EnviroCopper Ltd.
Thor is an AIM and ASX listed exploration and development natural resources company, with interests in tungsten, molybdenum and copper projects in Australia and the USA. For the year ended 30 June 2019, Thor reported net assets of £12.48 million and a net loss of £0.74 million.
Michael McNeilly, Chief Executive Officer of Metal Tiger, commented:
"We are deeply disappointed with the performance of Thor and have maintained our pro-rata holding in order to protect our investment. We see Thor management (excluding Mark Potter who was only recently appointed) as having failed to deliver on their targets and believe that it is essential that cost cutting measures are taken urgently in order to reduce Thor's ongoing administrative costs. We do believe there is investment value that can be realised from Thor and agree that drilling at Bonya could improve the viability of Molyhill and is therefore important. We also believe that management needs to actively start considering new strategic assets to help drive shareholder value and improve market sentiment."
For further information on the Company, visit: http://www.metaltigerplc.com:
Michael McNeilly | (Chief Executive Officer) | Tel: +44 (0)20 7099 0738 |
Mark Potter | (Chief Investment Officer) | |
Richard Tulloch James Dance Jack Botros | Strand Hanson Limited (Nominated Adviser) | Tel +44 (0)20 7409 3494 |
Nick Emerson | SI Capital (Broker) | Tel: +44 (0)1483 413 500 |
Gordon Poole James Crothers Monique Perks | Camarco (Financial PR) | Tel: +44 (0)20 3757 4980 |
Notes to Editors:
Metal Tiger plc is admitted to the AIM market of the London Stock Exchange AIM Market ("AIM") with the trading code MTR and invests in high potential mineral projects with a base, precious and strategic metals focus.
The Company's target is to deliver a high return for shareholders by investing in significantly undervalued and/or high potential opportunities in the mineral exploration and development sector. Metal Tiger has two investment divisions: Direct Equities and Direct Projects.
The Direct Equities Division invests in undervalued natural resource companies. The majority of its investments are listed on AIM, the TSX and the ASX, which includes its 26.5% interest in MOD Resources Limited. The Company also considers selective opportunities to invest in private natural resource companies, typically where there is an identifiable path to IPO. Through the trading of equities and warrants, Metal Tiger seeks to generate cash for investment in the Direct Projects Division.
The Direct Projects Division is focused on the development of its key project interests in Botswana, Spain and Thailand. In Botswana, Metal Tiger, through its joint venture with MOD and its interest in Kalahari Metals Limited, has a growing interest in the large and highly prospective Kalahari copper/silver belt. In Spain, the Company has tungsten and gold interests in the highly mineralised Extremadura region. In Thailand, Metal Tiger has interests in two potentially near-production stage lead/zinc/silver mines as well as licences, applications and critical historical data covering antimony, copper, gold, lead, zinc and silver opportunities.
The Company actively assesses new investment opportunities on an on-going basis and has access to a diverse pipeline of new opportunities in the natural resources and mining sectors. For pipeline opportunities deemed sufficiently attractive, Metal Tiger may invest in the project or entity by buying publicly listed shares, by financing privately and/or by entering into a joint venture.