Metal Tiger Plc (LON:MTR) has topped up its stake in Red Rock Resources Plc (LON:RRR) investing £100,000 in the group though a share subscription.
The small cap mining investor and exploration group’s stake in Red Rock increases to 16.81%. It bought 25mln shares in the placing, priced at 0.4p per share. And a representative of Metal Tiger will be appointed to the Red Rock board in due course.
“The board of Metal Tiger is keen to continue to expand our investments in natural resource companies where we believe there is significant share price upside potential as the resource sector moves into a full recovery phase,” said Paul Johnson, Metal Tiger chief executive.
Johnson added: “in a recovering resource market environment the best returns for shareholders can often lie in the reigniting of investment in hard rock mineral deposit opportunities, notably within precious and strategic metals.
“We are pleased that the Red Rock management team shares our thoughts in this regard and will seek to drive the strategic direction of the company to open up to the development of hard rock opportunities.”
Metal Tiger also received 25mln share warrants from Red Rock, allowing Metal Tiger to acquire more new shares at 0.8p over the next two years. It now holds in total 29.76mln warrant exercisable at 0.84p and 25mln warrants exercisable at 0.8p.