TIDMMTR
Metal Tiger Plc
12 July 2016
Metal Tiger Plc
("Metal Tiger" or the "Company")
STRATEGIC INVESTMENT IN KOLAR GOLD
Metal Tiger plc (LON:MTR) the London Stock Exchange AIM listed
investor in strategic natural resource projects is pleased to
announce that the Company is to make a strategic investment in
Kolar Gold Limited (LON: KGLD) ("Kolar Gold") which will see Kolar
Gold with a restructured board of directors.
Highlights:
-- Transaction subject to Kolar Gold shareholder approval at
Extraordinary General Meeting to be held on 27 July 2016;
-- Metal Tiger to invest GBP200,000 in cash to acquire 18,181,818 shares in
Kolar Gold at a price of 1.1p per new ordinary share and
equating to
circa 9.4% of Kolar Gold shares in issue post placing;
-- Metal Tiger to also receive 18,181,818 warrants to acquire new
ordinary shares in Kolar Gold at an exercise price of 2.2p per
new
ordinary share exercisable at any time within 30 months of the
placing
shares being admitted to trading;
-- Metal Tiger has entered into an option agreement for a fee of
US$25,000 to acquire a further 9,000,000 existing Kolar Gold
shares
from its current largest shareholder, at a price of 3.5p per
share
exercisable on or before 7 March 2017. It is at Metal Tiger's
sole
discretion to choose if it wants to exercise the option;
-- Board restructuring to take place at Kolar Gold - Metal Tiger's
inaugural CEO Cameron Parry, to step down from the board of
Metal
Tiger to take up the position of CEO of Kolar Gold, subject to
the
passing of the resolutions at the Kolar Gold GM to be held on 27
July
2016. Luke Cairns to join as the other Executive Director of
Kolar
Gold. Harvinder Hungin to remain Non-Executive Chairman, Steven
Oke to
remain Non-Executive Director and Vaidyanathan Sivakumar to step
down
as Non-executive director; and
-- New board of Kolar Gold to launch an immediate operational review
covering existing exploration interests and various pipeline
acquisition opportunities that may be suitable for the Kolar
Gold
business.
Paul Johnson, Chief Executive Officer of Metal Tiger plc
commented "We are delighted to announce the investment in Kolar
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.
I can also confirm that Metal Tiger's creator and former CEO,
Cameron Parry, is stepping down from Metal Tiger's board upon
completion of the transaction to commit his drive and ability to
generate shareholder value to a new vehicle. We accept this is
necessary and whilst Cameron will continue to provide Metal Tiger
with his input as a strategic consultant, I'd like to take this
opportunity to thank Cameron for establishing Metal Tiger and
helping to generate the tremendous value Metal Tiger has delivered
for shareholders.
With Cameron and new executive director Luke Cairns taking on
the management of Kolar Gold, we are confident that Kolar Gold will
keenly utilise its new managerial and financial resources to
rapidly build shareholder value by maximizing its current project
interests in India, whilst identifying new complementary
opportunities to refresh the business model and reinvigorate the
Company and its investors.
We are hugely excited by the opportunity afforded by our
investment and Cameron's involvement in Kolar Gold and we look
forward to updating investors further on transaction
completion."
Kolar Gold reported a loss before tax of GBP1,254,716 for the
year ended 30.06.15 and unaudited net assets of GBP3,701,713 as at
31.12.15.
For further information on the Company, visit:
www.metaltigerplc.com:
Paul Johnson (Chief Tel: +44 (0)7766 465 617
Executive Officer)
Terry Grammer (Non- Tel: +44 (0)207 099 0738
Executive
Chairman)
Sean Wyndham-Quin Spark Advisory Partners Tel: +44 (0)
Neil Baldwin Limited 2033 683 555
Nick Emerson (Nominated Adviser)
Andy Thacker SI Capital www.sparkadvisorypartners.com
(Sole Broker) 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.
Note: This announcement contains inside information which is
disclosed in accordance with the Market Abuse Regulation.
View source version on businesswire.com:
http://www.businesswire.com/news/home/20160711006428/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
July 12, 2016 02:00 ET (06:00 GMT)
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