Metal Tiger Plc (LON:MTR) shares soared on Tuesday after the natural reources investor said it was “pleased to note” the recommended offer from Sandfire Resources Ltd (ASX:SFR) for MOD Resources (ASX:MOD)(LON:MOD).
Metal Tiger has had a long-standing relationship with MOD exploring for copper in Botswana.
It currently holds a substantial stake in MOD, having converted its stake in a joint venture directly into shares.
All told, Metal Tiger’s interests in MOD and assets related to the joint venture that are set to be realised by the Sandfire offer have a combined total value of £23.2mln.
That’s a nice return on the £7.7mln Metal Tiger has invested in the MOD joint venture over the years.
The Sandfire offer for MOD amounts to 0.0664 shares for every MOD share, which values MOD at A$0.45 per share.
Metal Tiger will take its consideration in Sandfire shares, and will accordingly end up holding around 3.5% of Sandfire.
In afternoon trading, shares in Metal Tiger were 11.5% higher at 1.45p, with MOD shares in London up 17% at 20.50p.
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