Natural resources investor Metal Tiger PLC (LON:MTR) is set to spin out its Thai assets after confirming plans to float its silver, lead and zinc-focused Thai joint venture on AIM.
The float – which Metal said is the “first IPO of a Thai operation on the London Stock Exchange” – is slated for the second quarter of this year.
Geoff McIntyre has been bought in to head up the new company, which is looking to raise between £3mln and £4mln from the listing, including any pre-float funding.
“The IPO of the Thai Joint Venture is expected to realise significant value for all interested parties and shareholders and create a highly attractive company on AIM for investors to gain exposure to a near-term production silver-lead-zinc project,” said chief executive Michael McNeilly.
Metal Tiger has an effective 78% interest the Boh Yai and Son Toh mines, both brownfield sites, which have become more attractive given the surge in lead and zinc prices over the past 12 months.
VSA Capital reckons the project has “strong cash flow potential” and attractive returns with a net present value of US$44mln.
A lot of the mine’s original underground infrastructure and processing plant remains in good order, which should mean that starting the project back up again is a relatively low-cost affair.
The firm is currently going through the permitting process in the country to try and get a mining licence as well as exploration licenses on some of the surrounding areas.