6 Apr 2016 14:30
Metal Tiger Plc
6 April 2016
Metal Tiger Plc
("Metal Tiger" or the "Company")
STRATEGIC INVESTMENT IN GREATLAND GOLD
Metal Tiger plc (LON:MTR) the London Stock Exchange AIM listed investor in strategic natural resource projects is pleased to announce the Company has agreed to make a strategic investment in Greatland Gold plc (LON:GGP)("Greatland Gold").
Highlights:
§ Metal Tiger to invest £150,000 to acquire 150 million shares in Greatland Gold at a price of 0.10p per new ordinary share which equates to c12.6% of Greatland Gold shares in issue post the placing;
§ Metal Tiger will also receive 150 million warrants to acquire new ordinary shares in Greatland Gold at an exercise price of 0.20p per new ordinary share exercisable at any time within 3 years of the placing shares being admitted to trading;
§ Board restructuring to take place at Greatland Gold - John Watkins has stepped down from his Non-executive director role with immediate effect and Paul Johnson (CEO of Metal Tiger) and Alex Borrelli (Non-executive director of Metal Tiger) of Metal Tiger plc will, following completion of standard due diligence procedures, join as new Non-executive directors. Andrew Bell remains Chairman of Greatland Gold and Callum Baxter becomes Executive Director; and
§ New board of Greatland Gold to launch an immediate full strategic review covering existing exploration interests and various pipeline acquisition opportunities that may be suitable for the Greatland Gold business.
Terry Grammer, Chairman of Metal Tiger plc commented "We are delighted to announce the investment in Greatland Gold which exposes Metal Tiger shareholders to equity and warrant upside in a clean resource operating company at a modest valuation given the recent resource sector apathy in the markets.
Paul Johnson and Alex Borrelli will contribute to the strategic review which is designed to ensure that Greatland Gold focuses its managerial and financial resources on its highest potential projects, whilst identifying new opportunities to refresh the business model and recharge management and investors.
Greatland Gold is well positioned to benefit from a sector recovery in natural resources, however to expedite and maximize the company's share price recovery, henceforth Greatland Gold needs to be more proactive on the ground and more communicative in the marketplace. Metal Tiger representative Non-executive directors can assist this process.
We are hugely excited by the opportunity afforded by our investment and involvement in Greatland Gold. We look forward to updating investors further as matters progress."
Paul Johnson, CEO of Metal Tiger, and his spouse have a combined beneficial interest of 54,406,636 shares in Greatland Gold representing 5.48% of the issued share capital (before the placing). Consequently, Paul Johnson has absented himself from any Board discussions regarding this potential investment.
For further information on the Company, visit: www.metaltigerplc.com:
Paul Johnson (Chief Executive Officer) | Tel: +44 (0)7766 465 617 | |
Terry Grammer (Non- Executive Chairman) | Tel: +44 (0)207 099 0738 | |
Sean Wyndham-Quin Neil Baldwin Nick Emerson Andy Thacker | Spark Advisory Partners Limited (Nominated Adviser) SI Capital (Sole Broker)
| Tel: +44 (0) 2033 683 555 www.sparkadvisorypartners.com Tel: +44 (0) 1483 413 500 |
Notes to Editors:
Metal Tiger plc is listed on the London Stock Exchange AIM Market ("AIM") with the trading code MTR and invests in high potential mineral projects with a precious and strategic metals focus.
The Company's target is to deliver a very high return for shareholders by investing in significantly undervalued and/or high potential opportunities in the mineral exploration and development sector timed to coincide, where possible, with a cyclical recovery in the exploration and mining markets. The Company's key strategic objective is to ensure the distribution to shareholders of major returns achieved from disposals.
Metal Tiger's Metal Projects Division is focused on the development of its key project interests in Botswana, Spain and Thailand. In Botswana Metal Tiger has a growing interest in the large and highly prospective Kalahari copper/silver belt. In Spain Metal Tiger the Company has tungsten and gold interests in the highly mineralised Extremadura region. In Thailand Metal Tiger has expanding interests over licences, applications and critical historical data covering antimony, copper, gold, silver, lead and zinc opportunities.
The Company has access to a diverse pipeline of new opportunities focused on the natural resource sector including physical resource projects, new natural resource centred technologies and resource sector related fintech opportunities. Pipeline projects deemed commercially may be undertaken by Metal Tiger or by an ISDX or AIM partner with whom the Company is engaged.
Metal Tiger also has an Asset Trading Division that holds various financial instruments for trading purposes including equities, warrants and royalty income. The aim of the division is to generate profits to reinvest into the Company's project based activities.
As the resource sector moves solidly into the recovery phase opportunities exist for Metal Tiger to take a more proactive role within its investments, something that can be seen occurring in MetalNRG (ISDX:ZIMO) and Greatland Gold plc (LON:GGP). Further participatory financing transactions are planned, to build the network and presence of the Metal Tiger business ethos and to create investments capable through capital growth in material augmenting metal Tiger's underlying working capital.