ASX Placing to raise A$5m (c.£2.677m)

26 Jul 2021 07:40

Metal Tiger plc

("Metal Tiger" or the "Company")

ASX Placing to raise A$5m (c.£2.677m)

Metal Tiger plc (AIM: MTR, ASX: MTR), the AIM and ASX listed investor in natural resource opportunities, is pleased to announce that it has received firm commitments from existing and new strategic, institutional and sophisticated investors for a conditional capital raising of A$5,000,000 (approximately £2.677m) (before costs), at a placing price of A$0.37 (approximately 20p) per CHESS Depositary Interest (“CDI”) (the “Placing”). The Placing is expected to facilitate additional liquidity to the Company’s ASX quotation and assist Metal Tiger to establish an increased presence in the Australian market. The net Placing proceeds will be applied across Metal Tiger’s global resources investments.

Cobre Limited (ASX: CBE) (“Cobre”), a Company in which Metal Tiger holds a 16.62% interest*, is a related party of Metal Tiger’s Chief Executive Officer, Michael McNeilly, under the ASX Listing Rules, which has conditionally subscribed for 2,702,703 new CDIs as part of the Placing for A$1.0m. As per the requirements of the ASX Listing Rules, Cobre’s participation is subject to Metal Tiger shareholder approval and the Company intends to convene a shareholder meeting during August 2021 to obtain shareholder consent.

Accordingly, the Placing will be completed in two tranches, whereby 10,810,811 new CDIs will be issued in the first tranche (“Tranche 1”) and, conditional on shareholder approval, 2,702,703 new CDIs will be issued to Cobre in the second tranche (“Tranche 2”).

Metal Tiger Chief Executive Officer, Michael McNeilly, commented: “Metal Tiger is very pleased to welcome a number of new sophisticated and institutional investors to the register and recognises the continued strong support from our existing shareholders. The Board is pleased to note that an A$1.5m cornerstone investment was received by a pre-eminent Australian family office.”

“The Placing enables Metal Tiger to make further strategic investments in the global resources sector in line with our various investment strategies. In addition, the Placing is expected to facilitate additional liquidity to the ASX quotation and assist Metal Tiger in establishing an increased presence in Australia.”

Further details of the Placing, Admission and Total Voting Rights

The Placing was priced at the following % discount to VWAP on the AIM quotation

Source: Bloomberg

Subject to shareholder approval, the Placing will result in the issue of, in aggregate, 13,513,514 new CDIs, which will require 13,513,514 new ordinary shares of 0.1p each in the capital of the Company (“Ordinary Shares”) to be issued to Link Asset Services, the Company’s CHESS Sponsor.

Ashanti Capital Pty Ltd and Taylor Collison Limited acted as Joint Lead Managers to the Placing. Under the terms of the Placing the Joint Lead Managers will receive 1,000,000 unlisted options (“Options”) exercisable three years from the date of issue at A$0.555 per CDI.

Application will be made for the 10,810,811 new Ordinary Shares to be issued pursuant to Tranche 1 of the Placing (the “Tranche 1 Shares”), which will rank pari passu with the Company's existing Ordinary Shares, to be admitted to trading on the AIM market of the London Stock Exchange (“Admission”). It is anticipated that Admission will become effective at 8.00 a.m. on 6 August 2021.

Following the issue of the Tranche 1 Shares, the number of Ordinary Shares in issue in the Company will increase to 166,720,873. For the purposes of the Financial Conduct Authority's Disclosure and Transparency Rules ("DTRs"), the issued Ordinary Share capital of Metal Tiger following this allotment will consist of 166,720,873 Ordinary Shares with voting rights attached (one vote per share). There are no shares held in treasury. This total voting rights figure may be used by shareholders as the denominator for the calculation by which they will determine whether they are required to notify their interest in, or a change to their interest in, Metal Tiger under the DTRs or the ASX Listing Rules.

*Metal Tiger is currently interested in 26,006,963 Cobre shares, representing approximately 16.62% of Cobre’s issued share capital. As announced on 15 April 2021, Metal Tiger will be interested in an additional 8,311,765 shares subject to shareholder approval of Metal Tiger’s participation in the Cobre Fundraise. In addition, the Company expects to be issued a further 445,368 new Cobre shares subject to certain conditions being met, as announced 15 December 2020. Assuming all of these further issuances of shares in Cobre occur, Metal Tiger would be interested in approximately 21% of Cobre Limited.

For further information on the Company, visit: www.metaltigerplc.com

Enquiries:

Notes to Editors:

Metal Tiger PLC is admitted to the AIM market of the London Stock Exchange AIM Market ("AIM") and the ASX Market of the Australian Securities Exchange Market ("ASX") 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: Equity Investments and Project Investments.

Equity Investments invests in undervalued natural resource companies. The majority of its investments are listed on AIM, the TSX and the ASX, which includes its interest in Sandfire Resources Limited (ASX: SFR). 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 for the Project Investments division.

Project Investments is focused on the development of its key project interests in Botswana, where Metal Tiger has a growing interest in the large and highly prospective Kalahari copper/silver belt through its interest in Kalahari Metals Limited.

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.

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