Natural resources-focused investment company Metal Tiger (LON:MTR) has exercised its option to buy-out its former joint venture partner in Thailand, South East Asia Mining (SEAM).
At the same time, Metal Tiger will offload a 10% interest to a local Thai operating company, leaving Metal Tiger with 90% of the assets of its former joint venture with SEAM.
Metal Tiger has paid $200,000 in cash to SEAM, funded entirely from existing resources, and has granted SEAM shares in Metal Tiger to the value of $300,000 based on a transaction price of 0.87p per share.
A further $100,000 cash payment, plus a $60,000 working capital contribution and the issue of 23.8mln Metal Tiger warrants could be payable if SEAM is granted its primary target prospecting licence 1/2557 in the Kanchanaburi in Western Thailand.
Metal Tiger said it is actively engaged with Thai operating partners to continue the work programme across the Thai interests and to investigate additional opportunities.
“The strategic value of this acquisition is very important as we build our investment in Thailand. That investment is lent more credibility because the local Thai operating team, including key members of the SEAM organisation, have extensive operating experience in Thailand,” said Paul Johnson, chief executive officer of Metal Tiger.
“With this acquisition now undertaken, our focus moves to building on this foundation by investing in work on the ground in our existing interests and by adding new opportunities that offer material value upside for shareholders,” Johnson added.