Metal Tiger raises cash for Botswana projects

Staff Writer | Friday December 16, 2016 15:07

Metal Tiger owns a copper exploration project in the Kalahari Copperbelt. Investors paid 1.5 pence – the going rate for the stock at the time of the placing – for each of the 106-million shares.

One warrant, with an exercise price of two pence and an exercise period of 12 months, was also issued alongside each share.

Metal Tiger says most of the cash will go towards supporting the development of its copper venture in Botswana and towards the permitting process at the firm’s silver-lead-zinc in Thailand.

The fund raise – which is the largest single sum raised by the company – will also be used to allow the company to “explore corporate activities”.

“This funding places Metal Tiger in a strong position and enables the company to further develop its metal projects division and explore value generative commercial transactions,” said chief executive Michael McNeilly.

Several directors – including McNeilly, chairman Charles Hall and non-executive director Paul Johnson – took part in the placing.

The new chief executive, who was only appointed last week in a boardroom reshuffle, added he is looking to bring on board a technical director to support investments on the ground.

The main focus of recent months has been what’s going on behind the scenes at Metal Tiger, with two major boardroom overhauls in as many months.

Some good news flow from Spain and Botswana in recent days has moved the attention back on its projects though, and McNeilly hopes this continues.

“Since late November investors have been more focused on the corporate events surrounding Metal Tiger, rather than the underlying value in the company’s core projects.”

Metal hailed the “exceptionally positive data” from a scoping study at its Kalahari Copper Belt joint venture in Botswana last week, which estimated that the T3 deposit had a base case net present value of $180mln.

In Thailand, new legislation which is set to be approved shortly contains “positive and progressive changes” to the original Mineral Act which should support the company’s operations in the country.

“The strategic value of our investment in Metal Tiger Thailand is bolstered materially by positive developments of this nature in the legislature,” McNeilly said on Wednesday.