TIDMMTR 
 
 

Metal Tiger plc

 

("Metal Tiger" or the "Company")

 

Investment into Armada Exploration Limited

 

Metal Tiger plc (AIM: MTR), the London Stock Exchange AIM listed investor in natural resource opportunities, is pleased to announce that it has signed an investment agreement with Armada Exploration Limited, a Mauritian holding company ("Armada" or the "Company") which owns 100% of Armada Exploration (Gabon) SARL. Armada holds two exploration licences, prospective for magmatic Ni-Cu sulphide, in Gabon, covering a total area of nearly 3,000km(2) . The licence holding is considered to present a frontier district-scale exploration opportunity.

 

Metal Tiger has subscribed for 5,000,000 new ordinary shares at a price of US$0.15 in Armada for total consideration of US$750,000 via a promissory note with US$350,000 to be invested up-front and with the $400,000 to be paid in monthly instalments of US$80,000 over the next five months. In the event of a public listing Metal Tiger will need to settle any outstanding amounts under the promissory note in full at the time of the public listing. Following completion, Metal Tiger will own 18.5% of the issued ordinary share capital of Armada. Metal Tiger will be given the right to appoint a director to the Board of Armada (or equivalent top co, in the event of a restructuring as part of a listing); Metal Tiger has not yet opted to take up this right.

 

Highlights:

   -- US$750,000 invested for 18.5% of the Company alongside RCF Opportunities 
      Fund L.P. ("RCF") and Cobre Limited ("Cobre"). 
 
          -- Cobre is investing US$750,000 for an 18.5% interest. Metal Tiger 
             has a 19.99% equity interest in Cobre. 
 
   -- Compelling geology at the district scale: the location along the Congo 
      Craton margin with a complex regional-scale fault network has permitted 
      extensive volumes of mafic melt to intrude into sulphide-bearing country 
      rocks ("basement") assisting the potential formation of magmatic Ni-Cu 
      sulphide deposits. 
 
   -- Using a combination of regional soil surveys and mapping, existing 
      airborne magnetic, radiometric and electromagnetic (versatile time domain 
      electro-magnetic or "VTEM") geophysical survey data, Armada has 
      delineated an initial 18 named targets, situated along this distinct 
      basement corridor. 
 
   -- Copper and nickel sulphide occurrences have been mapped at surface at 
      three top ranked targets (Libonga North, Matchiti Central and Doumvou). 
 
   -- The results from detailed whole rock geochemical studies have proven 
      peridotite to gabbro fractionation suites at the Libonga North and 
      Matchiti Central targets. 
 
   -- The 20km-long Libonga-Matchiti Trend ("LMT") is drill ready. 
 
   -- A new high resolution 707-line km time domain electromagnetic ("HTDEM") 
      survey is in progress, using New Resolution Geophysics ("NRG(TM)") 
      Xcite(TM) airborne electromagnetic system1 at the Libonga North, Matchiti 
      Central and Doumvou targets. 
 
   -- A drilling programme of 3,000m is planned to commence in the second half 
      of 2021. 
 
   -- An IPO is targeted for 2021 coinciding with drill rig mobilisation. 
 
   -- Experienced leadership team with a serially successful track record of 
      involvement in major discoveries as well as extensive operational 
      experience in Central and Southern Africa. 
 

Michael McNeilly, Chief Executive Officer of Metal Tiger, commented:

 

"We are pleased to invest in Armada, which presents a district scale opportunity with compelling geology. This frontier is significantly under-explored, which makes it so exciting, and we welcome the longer-term proposal for Armada to undertake an IPO."

 

"Armada has completed significant work to create a compelling geological model that has delineated multiple drill-ready projects. Should the initial work programme prove successful it has the potential to create significant value uplift across all of the untested targets and increase the overall attractiveness of the district."

 

"Given its experienced leadership team, who have a successful track record of involvement in major discoveries and operational experience in Central and Southern Africa, we look forward to the results of Armada's upcoming operational phase."

 

Background on Armada

 

Armada was established to define new belt-scale discovery opportunities for key commodities (principally nickel and copper) in under-explored regions of Africa. With >US$10m spent targeting an area of >16,000km(2) , Armada is preparing to drill a multi-target project opportunity for magmatic Ni-Cu sulphides in the Nyanga area, southern Gabon. Armada is supported by a Board and Africa-based technical team both with a track record of successful African projects. Key members of the Armada targeting team were part of the team awarded the 2015 PDAC Thayer Lindsley Award for an International Mineral Discovery (as members of the Kamoa/DRC discovery team with Ivanhoe Mines).

 

For the year ended 31 December 2020, Armada recorded a net loss of US$89,369 and, as at 31 December 2020, reported net assets of US$9,288,843.

 

Technical Summary

 

Armada presents a first-mover advantage in the exploration for magmatic nickel-copper sulphide deposits in Gabon. Through its two exploration licences (G5-150 and G5-555 -- see Table 1 below) the company holds rights to 2,991 km(2) of ground associated with the Congo Craton margin. The basement within the licence areas have been intruded by a suite of mafic and ultramafic intrusions which represent the primary target for magmatic Ni-Cu mineralisation in this area.

 

The craton margin setting of the Armada project area is considered to represent a region of relatively thin lithosphere which became the focus of strain during successive regional tectonic events resulting in the continued reactivation of potential crustal-scale fault networks which facilitated the emplacement of, potentially metal-sulphide rich, magmatic melts into the crust.

 

Using a combination of existing airborne magnetic, radiometric and electromagnetic geophysical survey data interpretations and regional soil surveys Armada has delineated an initial 18 named targets, situated within this distinct basement corridor.

 

The three highest ranking targets coincide with two parallel structural trends. The Libonga North and Matchiti Central targets sit along a 20km long north to northwest striking feature defined as the Libonga-Matchiti Trend ("LMT"). The LMT has been delineated from magnetic and radiometric datasets and is characterised by a series of mafic and ultramafic intrusive bodies.

 

The top three ranked targets, Libonga North and Matchiti Central (the LMT) and Doumvou were subject to field mapping, soil and whole-rock geochemical sampling and ground gravity geophysical surveys. The ground gravity surveys outlined gravity anomalies interpreted as dense bodies, whilst detailed Cr, Ni and Cu soil geochemistry further defined and confirmed areas underlain by mafic-ultramafic lithologies.

 

The Libonga North target sits at the northern end of the LMT and is coincident with a gravity anomaly (a dense body), a VTEM conductor, and regional Ni-Cu (Cr) anomalism identified from geochemical soil sampling. The Libonga North target has been investigated by detailed field mapping with visible chalcopyrite occurrences identified in a number of field localities within the confines of the intrusion boundaries. Rock samples collected during the mapping programs were submitted for detailed whole rock geochemical assessment with results, interpreted independently, suggesting peridotite to gabbro fractionation suites, with the conclusion that the intrusions resulted from potentially multiple pulses of magma, bearing the potential for development of a mineralising system.

 

Preliminary geological modelling of the Libonga intrusion points to a sill-like body which plunges gently to the northwest. Initially, two high priority drill holes are planned to intersect the highest conductors interpreted from the existing VTEM data where there is spatial overlap with dense bodies mapped from the gravity data.

 

Plate modelling using Maxwell software and layered earth inversions of the NRG(TM) Xcite(TM) airborne electromagnetic data will be used to plan the drilling programmes.

 

Planned Follow-up Work Streams

 

Detailed Geophysics and Drilling Programme

   -- A 707-line km Xcite(TM) helicopter-borne time domain electromagnetic 
      'HTDEM' survey at 200m line spacing along the LMT and the Doumvou target 
      is due for completion in March 2021. Layered earth inversions using 
      Geoscience Australia code, inversions of magnetic data using Fullagar's 
      VPmg code and plate modelling using Maxwell software is planned. 
 
   -- A minimum of 3,000m of drilling is planned across three targets, with 
      holes planned to a depth of approximately 350m to the interpreted base of 
      the intrusion. The drilling programme will be supported by helicopter. 
 
          -- Priority 1 Drill Target: Libonga North. NRG(TM) Xcite(TM) airborne 
             electromagnetic survey and data modelling with a minimum of 1,000m 
             of core drilling to test for potential sulphide trap sites. 
 
          -- Priority 2 Drill Target: Matchiti Central. NRG(TM) Xcite(TM) 
             airborne electromagnetic survey and data modelling with a minimum 
             of 1,000m of core drilling to test the denser and more conductive 
             units interpreted from the data modelling. 
 
          -- Priority 3 Drill Target: Doumvou Target. NRG(TM) Xcite(TM) 
             airborne electromagnetic survey and data modelling with a minimum 
             of 1,000m of core drilling to test the potential prospectivity of 
             an interpreted northeast- southwest trending fault suture. 
 

Regional Programme

   -- Detailed mapping and rock grab sampling. 
 
   -- The NRG(TM) Xcite(TM) airborne electromagnetic survey may be extended out 
      on a regional belt scale (dependant on drilling results). 
 
   -- Priority targets identified by the regional programme will be escalated 
      for follow-on investigation. 
 

Table 1 Exploration Permit Details (1, 2)

 
Exploration   Licence Name  Commodity     Award /        Term     In good 
Permit                       Groups        Renewal Date           standing and 
Number                                                            renewable 
G5-150        Malounga      Base Metals   10 July 2019   3 years  Yes, 
                            including                             renewable 
                            nickel,                               for another 
                            copper, zinc                          3-year 
                            & lead                                term.in July 
                                                                  2022 
G5-555        Mayombe       Base and      25 April 2018  3 years  Yes, 
                            Precious                              renewable 
                            Metals                                for two 
                                                                  further 
                                                                  3-year terms 
                                                                  in April 
                                                                  2021 and 
                                                                  2024 
 

Table 1 Notes:

 

(1) : Exploration Permit translates from French 'Permis de Recherche Minière'.

 

(2) : Licences are subject to a 1.5% royalty granted to Denham Capital and a 0.5% NSR royalty held by RCF. In addition, Denham Capital hold a US$10.5m deferred payment obligation which is to be repaid if a mine is developed within the current licences.

 

Further details are available under the Portfolio section of the Company's website at: https://www.metaltigerplc.com/portfolio/project-investments/Armada-Exploration

 

Reference Note:

   1. Xcite(TM) is a new generation of helicopter-borne time-domain 
      electromagnetic (HTDEM) systems, developed by New Resolution Geophysics 
      (NRG(TM)) who are an airborne geophysical company specialising in the 
      collection of ultra-high resolution airborne data. Further details are 
      available at 
      https://www.airbornegeophysics.com/our-services/xcite-%E2%84%A2-helicopter-time-domain-electromagnetics-and-magnetics.html 
 
 

Qualified Person's Statement

 

The technical information contained in this announcement has been read and approved by Mr Nick O'Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Qualified Person under the AIM Rules - Note for Mining and Oil & Gas Companies. Mr O'Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Metal Tiger PLC to provide technical support.

 

This announcement contains inside information for the purposes of the market abuse regulation (EU No. 596/2014).

 

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

 

Enquiries:

 
Michael McNeilly     (Chief Executive Officer)        Tel: +44 (0)20 7099 0738 
Mark Potter          (Chief Investment Officer) 
James Dance          Strand Hanson Limited            Tel +44 (0)20 7409 3494 
 Jack Botros         (Nominated Adviser) 
 Georgia Langoulant 
Paul Shackleton      Arden Partners plc (Broker)      Tel: +44 (0)20 7614 5900 
 Steve Douglas 
Gordon Poole         Camarco (Financial PR)           Tel: +44 (0)20 3757 4980 
 James Crothers 
 Hugo Liddy 
 

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: 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.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20210319005059/en/

 
    CONTACT: 

Metal Tiger plc

 
    SOURCE: Metal Tiger plc 
Copyright Business Wire 2021 
 

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