MOD, in which Metal Tiger holds a 19.9% interest, shareholders on Tuesday approved the £91mln (AU$167mln) transaction, which still needs to go through the Supreme Court of Western Australia and further independent expert analysis, expected to be completed at the end of this month.
Metal Tiger’s chief executive Michael McNeilly said the sale is a foundation for future projects.
The AIM-listed investment company holds its equity interest in MOD after converting its stake in a joint venture directly into shares.
Metal Tiger, which has only invested £7.7mln in the joint venture over the years, will take its consideration in Sandfire shares and will end up holding around 3.5% in the ASX-listed miner for a combined total value in interests and assets of £23.2mln.
“The company is considering future investments and believes that investing in itself, via a share buyback, could be the best use of capital for the company,” said McNeilly.
“Eliminating discount to the net asset value of the business is a key focus of the board and we look forward to updating the market on this workflow and the closing of the deal in due course.”
Shares were up 2.67% to 1.46p in the early afternoon.