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Metal Tiger's Thai venture arranges funding ahead of float

Published: 08:29 07 Mar 2017 GMT

picture of digger
Kemco is name for new miner

Metal Tiger PLC (LON:MTR)  has completed the pre-flotation financing of its new Thai mining joint venture.

A funding with high net worth investors raised £514,000 for Kemco, the name of the new venture, payment of which will be triggered when the company lists on AIM.

The price is a 20% discount to the likely float price with the new investors also to get a warrant convertible at a 50% premium.

Metal Tiger and Kemco directors put in £67,000 of the money, which will fund the IPO costs and provide working capital for the Thai operations.

Since January, Metal Tiger has provided an additional £590,000 to Kemco to cover its costs.

A new Minerals Act is expected to come into force in Thailand by the end of August, which will aid the compnay beleives will aid the permitting of the two mines that make up the joint venture, Boh-Yai and Song-Toh.

Michael McNeilly, Metal Tiger’s chief executive, said the new act was signed ahead of expectations and underlined the Thai Government’s long term commitment to the extractive industry.

“We look forward to continuing to work closely with our Thai JV partners to make the IPO a success.”

The group has an effective 78% interest in the Boh Yai and Son Toh mines, which are both brownfield historical silver, lead and zinc mines sites in Kanchanaburi Province.

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