TIDMMTR
Metal Tiger Plc
("Metal Tiger" or the "Company")
Commencement of IPO Process and Appointment of Executive
Director
Metal Tiger (LON: MTR), the natural resources investing company,
is pleased to announce that the Song-Toh and Boh-Yai Thai
Silver-Lead-Zinc Mines Joint Venture (the "Thai Joint Venture") has
formally commenced an IPO process with regard to seeking admission
to trading on AIM in Q2 2017. The Company is also pleased to
announce the appointment of Geoff McIntyre as a Company Executive
Director with immediate effect. The incumbent Board prior to
Geoff's appointment believes that his knowledge of Thailand as well
as the Boh-Yai and Song-Toh project will be essential to the
Company as it seeks to assist the Thai Joint Venture with its IPO
process.
Michael McNeilly, Chief Executive officer of Metal Tiger
commented:
"The IPO of the Thai Joint Venture is expected to realise
significant value for all interested parties and shareholders and
create a highly attractive company on AIM for investors to gain
exposure to a near-term production silver-lead-zinc project. Having
listened to the concerns of Metal Tiger shareholders and assessed
Metal Tiger's business strategy with the Board, I am pleased that
the Thai Joint Venture has agreed that seeking an IPO on AIM is in
the best interests of all parties. I look forward to working with
the Thai Joint Venture to make this IPO a success and to realising
the true and currently unrecognised and not reflected value of
Metal Tiger's interest in the Thai Joint Venture for Metal Tiger
shareholders. I am grateful for shareholders' support of the
Company and hope that they will continue to support Metal Tiger's
ambitions as it evolves as a business.
I am very pleased to welcome Geoff McIntyre, a highly
experienced mining executive, to the Board of Metal Tiger and look
forward to working with him to deliver value to shareholders of
Metal Tiger."
Thailand IPO and New Director Appointment
The Board believes that Metal Tiger's 77.9% effective interest
in the Thai Joint Venture (based on current structure) is afforded
only modest value within the Company's overall market cap,
considering it offers the potential for near term production
project with low capex, low deal cost and the primary risk to
development being permitting. The Thai Joint Venture is progressing
permitting via the experienced and (predominantly Thai team) in
place. Updates on permitting progress will be made as and when
appropriate. The following studies have already been or will be
commissioned in the next month by the Thai Joint Venture:
-- Mine Plan for permitting submission (Bara Consultants)
-- Hydrogeology Study (GWRC)
-- Environmental Plan (IEM)
-- Second Baseline Study (IEM)
-- Tailings Dam Stability Assessment (Bara Consultants)
-- Economic Study for permitting submission (5 Corners)
-- Underground Stability Assessment
-- Tailings Geochemistry
-- Underground Air Quality Survey
-- Resource Recalculation which is expected to increase the Resource
confidence published in the 2012 NI 43-101
-- Updated AIM Standard compliant Preliminary Economic Assessment report
using Resource Calculation
Following discussions amongst the Board, brokers, advisers, and
the JV partner Pornnaret Klipbua (known as "Det"), the Directors
are confident that there will be parties interested in financing an
IPO of the Thai Joint Venture. The Board notes that the Thai Joint
Venture may consider seeking pre-IPO funding and that Metal Tiger
may consider offering to underwrite a portion of the pre-IPO
fundraising should it occur as well as potentially underwrite a
portion of the IPO fundraise as appropriate.
The Joint Venture and Metal Tiger teams have actively assessed
the cost-to-benefit-risk of an IPO and notes that there are low
up-front and limited monthly costs to be paid to advisers as part
of the process and to the extent possible, the majority of
advisers' fees will be paid on a success basis. The Directors note
that the Thai Joint Venture will need to raise a minimum of 12
months (in practice 18 months) working capital as part of the IPO
and is confident that this figure will not need to include Capex
requirements related to the project and therefore will comprise
primarily costs associated with permitting and preparation for
refurbishment of the processing plant and refurbishment and
replacement of equipment amongst other costs. Metal Tiger will of
course meet its funding obligations under the terms of the JVA
during the IPO process which should in turn reduce the working
capital requirements of the Thai Joint Venture upon admission
(should this be successful).
The Directors note that a successful IPO of the Thai Joint
Venture would eliminate a significant cost base within Metal Tiger
which would allow the Company to deploy its capital toward
financing the Joint Venture in Botswana and as appropriate toward
other Direct Project investments. It is the Board of Metal Tiger's
intention to issue a dividend-in-specie to Metal Tiger shareholders
as part of the Thai Joint Venture's IPO.
As part of the IPO there will be a requirement to provide a
competent persons report within the admission document and it is
the Thai Joint Venture teams' belief and its consultants' belief
that there is the potential to add a significant amount of resource
to the previously completed resource statement issued in the 2012
ACA Howe NI 43-101 report. "Det" Pornnaret Klipbua the Joint
Venture partner will be actively involved in the IPO process and
subject to regulatory approval will be a Director of the Thai Joint
Venture upon admission to trading.
Whilst the Board is highly confident in the potential for a
successful IPO of the Thai Joint Venture, the Board of Metal Tiger
notes that there can of course be no guarantees that an IPO of the
Thai Joint Venture and the associated fundraise will be successful.
Furthermore, there can be no guarantee that the IPO will complete
by the end of Q2 2017. The commencement of this IPO process will in
no way rule out the right of Metal Tiger to dispose of its stake in
the Joint Venture should an attractive offer materialise that would
in the opinion of the Board be better value for shareholders of
Metal Tiger.
Metal Tiger will advise at an appropriate time on the Board
composition of the Thai Joint Venture seeking admission to trading
on AIM. The Board of the Thai Joint Venture, should it successfully
admit to trading on AIM, will be required to adhere to appropriate
corporate governance requirements and Metal Tiger accepts, as a
likely substantial shareholder in the listed company, that it would
need to enter into an appropriate relationship agreement as part of
any admission to trading on AIM.
Director background:
Geoff is an experienced management professional and project
developer having advised private and public companies on a variety
of corporate transactions in the mineral development industry in
Southeast Asia.
Geoff specializes on providing strategic advice for project
development. Prior to his career in mining project development, he
worked in start-up companies and business development. Geoff has
completed a BA and MA in studies in Canada and Australia.
The following information is disclosed pursuant to Schedule Two
paragraph (g) of the AIM Rules for Companies:
Mr Geoffrey Stephen McIntyre, aged 38, holds or has held the
following directorships or partnerships in the past five years:
Current: Previous:
Alpha Sourcing Co. Ltd (Hong Kong) Metal Tiger Exploration
Savory Holding Co. Ltd (Thailand) Co. Ltd (Thailand)
Metal Tiger Mining Co. Ltd (Thailand)
Metal Group Co. Ltd (Thailand)
Shareholding in the Company: 4,826,255 ordinary shares
Save as disclosed, there are no other disclosures required in
relation to Rule 17 or paragraph (g) of Schedule 2 of the AIM Rules
for Companies.
For further information on the Company, visit:
www.metaltigerplc.com:
Michael McNeilly(Chief Tel: +44(0)20 7099 0738
Executive Officer)
Keith Springall (Finance Tel: +44 (0)207099 0738
Director
& Company Secretary)
Sean Wyndham-Quin Spark Advisory Partners Tel: +44 (0)
Neil Baldwin Limited 2033 683 555
(Nominated Adviser)
www.sparkadvisorypartners.com
Nick Emerson SI Capital Tel: +44 (0)1483 413 500
Andy Thacker (Joint Broker)
Andrew Monk VSA Capital Limited Tel: +44 (0)20 3005 5000
Andrew Raca (Joint Broker)
Gordon Poole Camarco Tel: +44 (0)203 757 4980
James Crothers (Financial PR)
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 viable may be undertaken by
Metal Tiger or by an ISDX or AIM partner with whom the Company is
engaged.
View source version on businesswire.com:
http://www.businesswire.com/news/home/20170111005435/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
January 11, 2017 03:41 ET (08:41 GMT)
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