logo-loader
viewMetal Tiger PLC

Metal Tiger raises funds after another Kalahari drilling success

Some of the newly issued shares will be sold to clients and affiliate of Sprott, which continues to support Metal Tiger, "which is demonstrable of their belief in the company and its investments," said Metal Tiger CEO, Michael McNeilly..

Pound coins
"We are very pleased with the level of support from both UK and international investors in this fundraising," said Michael McNeilly, Metal Tiger's CEO

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.

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.

Quick facts: Metal Tiger PLC

Price: 22 GBX

AIM:MTR
Market: AIM
Market Cap: £33.49 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Metal Tiger PLC named herein, including the promotion by the Company of Metal Tiger PLC in any Content on the Site, the Company receives from...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Thor Mining to acquire uranium and vanadium assets in US

Thor Mining PLC's (LON:THR)(ASX:THR) Mick Billing speaks to Proactive London's Andrew Scott after entering into an exclusive option to acquire 100% of the shares in American Vanadium Pty Ltd, a private Australian company, with interests in uranium and vanadium. Thor's also raising A$970,000 to...

on 1/6/20

3 min read