Metal Tiger PLC (LON:MTR) has received a boost from the latest assay results from the company’s joint venture project with MOD Resources Ltd (ASX:MOD).
The assay results from hole MO-A4-003D on the A4 Dome part of the project in the Kalahari copper belt in Botswana confirm an outstanding copper intersection, located eight kilometres from the joint venture’s T3 project.
WATCH: Metal Tiger PLC raises funds as Botswana project continues to impress
The intersection contained 52 metres (m) @ 1.5 copper (Cu) and 14 grams per tonne silver (Ag) from 232 metes.
The A4 Dome is one of many domes identified within theT3 Dome Complex.
The news sent MOD’s share price surging 13.6% to A$0.50 on Monday.
Bonanza grade assays for narrow individual veins (i.e. one metre or less) throughout the 52m intersection include 7.8%, 8.4%, 11%, 11.5%, 12.2% and 15.4% Cu, while the highest silver assay is 476g/t Ag which is associated with 15.4% Cu at the base of the 52m intersection.
“MO-A4-003D has turned out to be an extraordinary drill hole. It has intersected two zones of mineralisation in the early stages of drilling at the A4 Dome which shows strong similarities to the dome which underlies the T3 deposit,” said Julian Hanna, the managing director of MOD.
Michael McNeilly the chief executive officer of Metal Tiger, said it was particularly exciting that the intersection is reminiscent of the T3 deposit discovery hole.
READ: MOD Resources increases T3 indicated copper resource by 13%, drill testing additional potential extensions
“With a pipeline of drill targets identified from aerial electromagnetic geophysics in addition to those on the A4 Dome and A1 Dome, within the wider T3 Dome Complex, we are confident we have the potential for further T3 scale discoveries within the JV [joint venture] exploration holding,” McNeilly said.
In a separate announcement, Metal Tiger said it is to raise £3.45mln through a placing of shares and at least £1.15mln through an offering of shares to clients and affiliates of the Sprott Group of Companies.
The new shares will be issued at 2.8p; Metal Tiger shares closed at 3.35p on Friday.
Metal Tiger’s investment in MOD is up around 13.5% overnight, we’ll see if it reflected in their AIM share price. #MTR
— Mushroom Man (@TheMushr00mMan) August 6, 2018
Proceeds from the share issue will be used to fund Metal Tiger’s portion of its commitment to the JV with MOD Resources – Metal Tiger has a 30% stake in the JV - and to finance possible further investment in Kalahari Metals Limited in the same region.
The placing part of the fund-raising will entail the issue of 123.2mln shares, while the Sprott offer will see 41mln shares issued.
All of the newly issued shares will come with one warrant attached that can be exercised within three years to enable the holders to acquire new Metal Tiger share at 5p a pop.
Following the issue of the placing shares, the number of ordinary shares in issue in the company will increase to 1.25bn.
“For investors wanting exposure to the highly prospective Kalahari copper belt in Botswana, Metal Tiger offers a unique way of gaining de-risked exposure in early and later-stage development projects. This investment will allow the company to further cement its position on the belt as we continue to deliver value to our shareholders,” McNeilly said.
