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MOD Resources to take its ownership of T3 Copper Project to 100%

The agreement also includes a right to purchase Metal Tiger’s other joint venture interests.

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A long-life mining and processing operation is envisaged for T3 in Botswana

MOD Resources Ltd (ASX:MOD) has executed binding agreements to acquire JV partner Metal Tiger’s (AIM:MTR) 30% share of the T3 Copper Project in Botswana.

The consolidation will streamline proposed financing and development of the project and will include a right to purchase Metal Tiger’s interest in all other JV exploration assets within a three-year period.

READ: MOD Resources increases T3 indicated copper resource by 14%, drill testing additional potential extensions

MOD’s managing director Julian Hanna said the binding agreement had the potential to add significant value for MOD shareholders.

He said: “Firstly, it will consolidate ownership of the very substantial T3 Copper Project which, assuming a decision to mine is made in early 2019, should underpin the future of this company for many years.

READ: MOD Resources observes strong visible copper at depth within A4 Dome at T3

“Secondly, it provides a very flexible structure for MOD, with options to acquire Metal Tiger’s interests in any new discoveries that reach scoping study level within three years, and an option to consolidate the remaining exploration assets three years after completion.

“This transaction also lays the foundation for the financing and development of the T3 project and positions MOD as a dominant player in the Botswana copper belt.”

READ: MOD Resources extremely undervalued say analysts based on pre-feasibility study

The total value of the transaction equates to around $26.6 million and includes 17.2 million MOD shares, which will increase Metal Tiger’s shareholding in MOD to 12.5%.

It also includes around 40.6 million options with zero exercise price able to be converted into ordinary MOD shares within three years, provided it does not result in Metal Tiger’s holding in MOD exceeding 12.5%.

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