Metal Tiger PLC (LON:MTR) said investee company Kalahari Metals Limited (KML) has entered into a binding agreement with Resource Exploration and Development Limited (RED) to purchase 100% of Kitlanya Ltd, which owns five recently granted exploration licences in the prospective Kalahari Copper Belt.
The AIM-listed investor in strategic natural resource opportunities said post completion of the acquisition, Metal Tiger’s interest in KML will be diluted to approximately 43.9% of the issued share capital, down from its current level of 50%.
It noted that KML has completed US$100,000 of exploration works on the licences held by Kitlanya and will acquire 100% of the project for US$700,000, satisfied by the issue of shares representing approximately 13.4% of KML as enlarged by the acquisition.
The group pointed out that the transaction will value KML, post-acquisition completion, at US$5.2mln.
The acquisition which will increase KML’s direct land position in the Kalahari Copper Belt to approximately 8,594km2, is conditional upon approval of the change of control being granted by the authorities in Botswana and receipt of an updated letter of good standing for the licences, it added.
Metal Tiger said it intends to provide further funding to KML to support its drilling in the second quarter of 2019 and further announcements will be made as and when appropriate.
Michael McNeilly, Metal Tiger’s chief executive officer commented: “We are delighted that KML has reached an agreement to acquire Kitlanya, which will consolidate its highly prospective exploration interests in the Kalahari Copper Belt.
“We intend to demonstrate our continued support for KML and its activities in Botswana through the provision of further funding in due course.”