Metal Tiger will receive A$8.3mln (£4.6mln) in shares based on a price of A$0.48 per share for Aussie-listed MOD. Options exercisable at nil cost over the next three years take the value of the transaction to A$27.7mln.
A new joint venture is also being set up on a 70/30 MOD/Metal Tiger basis to continue exploration in 17 other licences in the Kalahari Copper Belt.
Metal Tiger said it has invested around £3.8m in the T3 joint venture and this deal will allow it to maintain its exposure without the requirement to contribute to mine construction costs while keeping an interest in the further exploration.
Consolidation of T3 under MOD's sole ownership should also make development financing easier to arrange.
Metal Tiger will become MOD’s largest shareholder following the transfer and have a net smelter royalty over T3 up to a value of US$2mln.
Michael McNeilly, Metal Tiger's chief executive, said the agreement had taken five months to conclude and provided the optimal path forward for the T3 Project.
"The new exploration JV preserves and also formalises Metal Tiger and MOD’s highly successful exploration partnership in the Kalahari Copper Belt."
Shares in Metal Tiger rose 3% to 2.93p.
-- Adds share price --