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Metal Tiger secures renewal of joint venture prospecting licences in Botswana

Metal Tiger's JV partner, MOD Resources, said the extension of the prospecting licences reinforces the confidence the Botswana regulator has in the extensive exploration and development activities being undertaken by the JV operating company
Copper symbol
No land was required to be dropped during the licence renewal

Several prospecting licences in Botswana that were due to expire at the end of 2018 have been renewed, Metal Tiger PLC (LON:MTR) said.

The copper/silver licences are held by the joint venture (JV) company in which Metal Tiger has a 30% stake and include PL 190/2008, which holds the T3 copper project, the T3 expansion project and the A4 dome.

READ: Metal Tiger says test work indicates lower costs at T3 copper development

Ministerial approval has been received for the transfer of eight joint venture licences (excluding PL 190/2008) from Tshukudu Metals Botswana (Pty) Ltd into a new Botswana registered JV exploration company, Tshukudu Exploration (Pty) Ltd, in which MOD Resources (ASX:MOD) has a 70% stake and Metal Tiger has 30%. The transfer approval for a further 10 licences is pending.

Metal Tiger said the transfer of the eight JV licences will help mitigate risk by separating exploration activities, conducted by Tshuduko Exploration, from future development activities, which will be conducted by Tshukudu Metals.

“This timely renewal secures tenure and retains 100% of the prospective ground under licence,” said Michael McNeilly, the chief executive officer of Metal Tiger.

“The renewal of the T3 project licence and the transfer of remaining prospective licences into a new joint venture exploration focussed vehicle is also an important step in the agreement for MOD to acquire the T3 Project outright and for MTR to realise substantial value for the deposit whilst still enjoying the potential upside from further exploration discoveries. The transfer of the T3 project into a 100% held vehicle should streamline the project’s financing options,” he added.

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