Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Metal Tiger placing raises £4.85mln in total, more than expected after extension

The AIM-listed firm said the fundraise, the largest by the company to date, included a total of £4.39mln raised through Sprott Capital Partners – above the £4.29mln targeted
A metal tiger
Metal Tiger said 161,666,666 new ordinary shares were placed at a price of 3p each

Metal Tiger PLC (LON:MTR)  said its private placement offering, run by Sprott Capital Partners has raised even more than expected, with gross proceeds of £4.85mln received by the closing date yesterday.

The AIM-listed strategic natural resources investor said the fundraise, the largest by the company to date, included a total of £4.39mln raised through Sprott – above the £4.29mln targeted – while a further £460,000 was raised through a placing and subscription of shares by the company.

The group said 161,666,666 new ordinary shares in Metal Tiger were placed at a price of 3p each, while 161,666,666 warrants to subscribe for 1,666,666 new ordinary shares were also issued at an exercise price of 6p per warrant, within a 5 year period.

READ: Metal Tiger extends placing closing date

CLICK HERE: For a daily round-up of all the Proactive news

Meanwhile, Metal Tiger said bookrunner  Sprott will receive 4,850,000 Finder Warrants in Metal Tiger, equal to 3.0% of shares issued under the placing, permitting the purchase of one Warrant Share for five years from the offer closing date at a price of 3p per unit.

Upon exercise of a Finder Warrant, Sprott will also be entitled on a 1 for 1 basis to a 6p warrant with a 5 year validity which could see the private wealth group  entitled to a further 4,850,000 warrants at a 6p exercise price with a 5 year validity.

In late morning trading today, Metal Tiger shares were 7%, or 0.2p higher at 2.95p.

In a note to clients following today’s news, broker VSA Capital reiterated a ‘buy’ rating on Metal Tiger but reduced their target price for the stock by 17% to 4p to reflect the dilution from the placing.

In its statement, Metal Tiger said the placing included contributions from UK and international investors, with £460,000 coming from the UK, while the international funds primarily came from institutional investors.

Level of institutional support "extremely satisfying", says Metal Tiger boss

Michael McNeilly, Metal Tiger’s chief executive officer, said:  “The level of institutional support has been extremely satisfying and is demonstrable of the maturity and evolving nature of the business since the beginning of the financial year."

The cash call funds will be used for the company to advance its interests across its mining portfolio, but in particular for the T3 project  in the Kalahari Copper Belt in Botswana where Metal Tiger has a joint venture with MOD Resources.

McNeilly added: “Metal Tiger is now well positioned to advance its main direct project interests, in particular matching its important 30% contribution toward the JV in Botswana both in regards to further exploration and to the T3 project as it moves up the development curve through PFS, DFS and ultimately to a decision to mine.

“This raise also gives Metal Tiger greater comfort with regard to the spin out of its Thai assets.“

READ: Metal Tiger flags up potential resource upgrade

Metal Tiger first announced plans to raise some cash at the end of March, although it was only originally looking to generate £3mln, but it expanded that target and also extended the closing date for three days to April 20.

CLICK HERE: For a daily round-up of all the Proactive news

View full MTR profile View Profile

Metal Tiger Timeline

Related Articles

picture of wire
July 17 2017
The company has two core projects: T3 in Botswana and Kemco and a lead-zinc-silver project in Thailand
Colin Bird
August 29 2017
Xtract Resources is on the cusp of significant cashflow, generated by alluvial gold production from Mozambique
Sayona Mining: Access latest PPT from Proactive's CEO Sessions
July 27 2017
Corey Nolan updated investors on lithium projects in Australia and Canada.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use