Metal Tiger PLC (LON:MTR) told investors that it has decided to postpone the proposed initial public offering for its Thai joint venture “until further notice”.
It comes as the company expects a delay to the possible approval of the ‘master plan’ related to the joint venture’s Song Toh and Boh Yai lead-zinc mine projects.
The company, in a statement, said that following talks with representatives of the Thai Department of Primary Industries and Mines (DPIM), it believes the plan won’t be considered until March - albeit, it added that there’s no guarantee on any exact timing or approval for the projects.
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Metal Tiger explained that it is prudent to postpone the IPO, due to the uncertainty over the plan and/or the potential designation of the Song Toh and Boh Yai deposit areas for mining.
At the same time, the company has undertaken an operational review of the venture and has put in place what is described as a “substantial cost cutting program” and has halted all capital intensive programmes for the project.
“Internal DPIM guidance on holding public hearings is expected to be published following the Master Plan being approved,” Metal Tiger said in a statement.
“Holding this public hearing is the first step in the permitting process and is a key condition precedent for any IPO.
“The company is ready to make its initial submission for the permitting process for the two lead-zinc-silver mines upon approval of the Master Plan and completion of the public hearing process. The majority of the work for the Thai IPO has been largely completed and any resumption of work on the IPO would require relatively modest updates.”
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The company added: “Metal Tiger has had encouraging preliminary conversations with its JV partner in relation to the terms of the current JV and is seeking an improved deal given the circumstances and the significant work completed to date.
“Any deal would be for minimal consideration, in light of Metal Tiger’s significant contributions to the project to date, and would be conditional on the Master Plan being approved.”