Strata Investment Holdings PLC (ASX:SRT) is transitioning from its existing portfolio into a more diversified, balanced and liquid investment portfolio following the company’s recent name change from Metal Tiger PLC.
The company’s new investment policy allows opportunities to achieve growth via the buying and building or seeding of complementary investments within the natural resources sector.
Strategic positioning in the Kalahari Copper Belt, Botswana
Strata has a strategic position in the Kalahari Copper Belt across the development cycle with a 1.1% equity stake in Sandfire Resources NL (ASX:SFR) and a 19% equity stake in Cobre Ltd (ASX:CBE).
The company also has multiple potential royalty streams across different projects in Botswana, including:
- A US$2 million capped 2% net smelter royalty over Sandfire Resources’ Motheo T3 project in the Kalahari Copper Belt (KCB);
- An uncapped 2% net smelter royalty over any future production over Sandfire Resources’ circa 8,000 square kilometres licence holding in the KCB; and
- an uncapped conditional 2% net smelter royalty over Cobre’s wholly-owned Kitlanya West, East Projects and the southern half of the Okavango Copper Project in the KCB. The licences cover an extensive land package of copper and silver exploration tenements over 4,304 square kilometres.
The company believes its potential royalty value is not embedded in its current share price, providing significant upside potential.
Strata is transitioning from direct project investments to equity investments only, however, it continues to be involved in some of its legacy active investments in several ASX-listed companies.
Strata retains an active investment in three ASX-listed companies across Tier 1 mining jurisdictions.
Chief Executive Officer Michael McNeilly has been at the helm of the company since December 2016. Previously, McNeilly served as a non-executive director of MOD Resources during its acquisition by Sandfire Resources for A$167 million.
Passive equity investment portfolio performance.