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Metal Tiger enters financing arrangement to increase its firepower

Metal Tiger has entered into a stock lending arrangement with the unnamed lender

Metal Tiger PLC -

Metal Tiger PLC (LON:MTR), the natural resources investment company, has entered into a financing arrangement with a global investment bank.

The company is using 1.68mln Sandfire Resources shares as security for the financing and has the option to increase the loan amount by increasing the number of Sandfire shares it puts up as security.

READ Metal Tiger takes 6.3mln shares in Sandfire Resources after takeover deal finalised

Costs of about A$0.675mln associated with the financing arrangements have been deducted from the loan proceeds of roughly A$8.175mln to leave Metal Tiger with A$7.5mln of cash proceeds.

The cash will be available to fund Metal Tiger's proposed share buyback; its participation in the Cobre flotation and existing and new public & private investments.

"Metal Tiger has been very pleased with its investment initially in MOD Resources Ltd and now Sandfire Resources NL,” said Michael McNeilly, the chief executive officer of Metal Tiger.

“We look forward to executing on our strategy of investing in strategic natural resource opportunities by way of the cash raised through this financing facility and note that the financing is not only cost-effective but importantly does not include any share price based triggers,” he added.

Quick facts: Metal Tiger PLC

Price: 1.635 GBX

AIM:MTR
Market: AIM
Market Cap: £24.89 m
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Metal Tiger's McNeilly details new funding arrangement and share buyback plans

Metal Tiger's (LON:MTR) Michael McNeilly discusses with Proactive London's Andrew Scott the plans around its share buyback programme.  MTR intends to buy back up to 155.9mln shares - equivalent to 10% of the current issued share capital of the company. McNeilly also talks through its...

on 19/12/19

2 min read