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Metal Tiger launches £3mln private placement via Canadian investment firm Sprott Wealth

Published: 14:45 28 Mar 2017 BST

Metal tiger
The terms of the offering will see 100,000,000 units in the company issued at a fixed price of £0.03 per unit

Metal Tiger PLC (LON:MTR) has signed terms with Canadian investment firm Sprott Private Wealth to act as exclusive agent as part of a £3mln private placement by the natural resources investor.

The firm said the net proceeds from the offering will be used to fund Metal Tiger’s portion of its commitment to the 2017 budget for its joint venture project with Australian partner MOD Resources in the Kalahari Copper Belt in Botswana, as well as for working capital and general corporate purposes.

The terms of the offering will see 100,000,000 units in the company issued at a fixed price of £0.03 per unit, with institutional investors expected to subscribe for the majority of the placing.

Each unit will consist of one ordinary share in the company and one ordinary share purchase warrant which will entitle the holder to acquire one other ordinary share at £0.06 for five years from the offer’s closing date.

In reaction, Metal Tiger shares shot 7% higher, up 0.2p at 3.025p.

Michael McNeilly, Metal Tiger’s chief executive officer of Metal Tiger said: “We are extremely pleased to have attracted the attention of Sprott. Sprott Private Wealth LP and its affiliates, one of the leading North American natural resources investors, have recognised the exceptional quality of the T3 copper discovery in Metal Tiger’s Joint Venture with MOD Resources, as well as the highly prospective exploration potential of our other JV exploration licences.

“With this capital raise, we will be in a strong position to advance the T3 exploration and feasibility study programme with MOD Resources during 2017, and I look forward to providing our shareholders with further updates on progress.”

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