Metal Tiger PLC (AIM:MTR) has received firm commitments from existing and new strategic institutional and sophisticated investors for a conditional capital raising of A$5mln at a placing price of A$0.37 per CHESS Depositary Interest.
The placing is expected to facilitate additional liquidity to the company’s Australian Securities Exchange quotation and assist Metal Tiger to establish an increased presence in the Australian market.
Cobre Ltd (ASX:CBE), a company in which Metal Tiger holds a 16.62% interest has conditionally subscribed for A$1mln worth of CDIs.
Cobre’s participation is subject to Metal Tiger shareholder approval as a related party transaction and the company intends to convene a shareholder meeting during August 2021 to obtain shareholder consent.
Accordingly, the placing will be completed in two tranches, whereby just over 10mln new CDIs will be issued in the first tranche and, conditional on shareholder approval, 2,702,703 new CDIs will be issued to Cobre in the second tranche.
“Metal Tiger is very pleased to welcome a number of new sophisticated and institutional investors to the register and recognises the continued strong support from our existing shareholders,” said Metal Tiger chief executive Michael McNeilly.
“The board is pleased to note that a A$1.5mln cornerstone investment was received by a pre-eminent Australian family office. The placing enables Metal Tiger to make further strategic investments in the global resources sector in line with our various investment strategies. In addition, the placing is expected to facilitate additional liquidity to the ASX quotation and assist Metal Tiger in establishing an increased presence in Australia.”