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Metal Tiger sells stake in T3 copper prospect to Aussie partner

Options exercisable at nil cost over the next three years, take the value of the transaction to A$27.7mln
Kalahari is a renowned copper area

Mining group Metal Tiger PLC (LON:MTR) has sold its 30% stake in the T3 copper prospect in Botswana to partner MOD Resources.

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.

WATCH: Metal Tiger looks to acquire up to 50% of Botswanan focused Kalahari Metals

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 -- 

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