Metal Tiger PLC UraniumJV proceeds;Issue/Exercise of KIBO warrants (1383C)
January 14 2015 - 6:30AM
UK Regulatory
TIDMMTR TIDMKIBO
RNS Number : 1383C
Metal Tiger PLC
14 January 2015
METAL TIGER PLC
14 January 2015
Metal Tiger plc
("Metal Tiger" or the "Company")
Uranium JV proceeding
Issue & Exercise of Kibo Warrants
On 21 November 2014, Metal Tiger Plc (LON: MTR), the AIM listed
natural resources company, announced that it had entered into a
Memorandum of Understanding ("MOU") with Kibo Mining Plc ("Kibo")
with a view to a 50/50 Joint Venture ("JV") on Kibo's
uranium-prospective tenements in Tanzania ("Pinewood
Portfolio").
Metal Tiger is pleased to announce it is satisfied with the
results of its due diligence of the Pinewood Portfolio and will now
proceed to finalise the JV agreement for uranium exploration with
Kibo. Under the MOU, by confirming due diligence is complete and
its commitment to proceed, Metal Tiger is to be issued with 10
million warrants for 10 million new ordinary shares in Kibo, with
an exercise price of 3p each and a term of 3 years from the date of
issue.
Metal Tiger has also entered into exclusive discussions with
Kibo to agree the terms of a Joint Venture on Kibo's
gold-prospective Morogoro South project.
Metal Tiger's CEO, Cameron Parry, commented: "Metal Tiger is
pleased to progress its commercial relationship with Kibo Mining
Plc by proceeding with the uranium Joint Venture, strengthening the
Company's equity position in Kibo, and entering into exclusive
discussions in relation to a gold exploration JV.
Metal Tiger takes a medium-term view with regard to its material
investments and seeks out opportunities with the potential to
generate a multiple on invested capital. Although recently going
below a notifiable shareholding in Kibo, as announced to the market
on 8 January 2015, Metal Tiger has maintained a substantial holding
of Kibo shares. Reflecting our view that Kibo is still
significantly undervalued and has the potential for
transformational commercial milestones, Metal Tiger will be
immediately exercising its 10 million warrants for a total payment
to Kibo of GBP300,000 from Metal Tiger's existing cash
resources."
Uranium Prospective Joint Venture Areas - Pinewood Portfolio
A wholly owned subsidiary of Kibo Uranium Limited, itself a
wholly owned subsidiary of Kibo Mining Plc, owns a portfolio of
Uranium prospective assets licences for exploration in Tanzania
(collectively the "Pinewood Portfolio").
The Pinewood Portfolio of exploration licences is located in the
southern western corner of Tanzania, between the regional capitals
of Iranga, Mbeya and Songea. The portfolio consists of 43 licences,
offers, applications and tenders with a combined surface area of
approximately 9,033 square kilometres.
Key Terms of the Uranium Project Joint Venture
Following completion of due diligence, the parties shall now
proceed to enter into a JV agreement on the following terms as
outlined in the MOU:
-- Metal Tiger is to acquire 50% of Kibo Uranium Limited ("KB
Uranium"), a 100% wholly owned subsidiary of Kibo Mining plc, that
owns the Pinewood Portfolio for a consideration of GBP1.
-- Metal Tiger is to meet the expenses in relation to the
licence renewal fees and other maintenance costs of the Pinewood
Portfolio for a minimum of 1 year (estimated to be approximately
$100,000) and up to a maximum of 3 years.
-- Metal Tiger is to expend the first US$800,000 under the JV in
expenses and exploration relating to the Pinewood Portfolio, at
which point costs moving forward are shared 50/50 between the
parties.
-- At any time following the first anniversary of the JV, on not
less than 90 days notice to Kibo, Metal Tiger may elect to cease
sole funding of the JV expenditure.
-- Should Metal Tiger elect to not continue with the JV after
the minimum term of one year, or fail to expend US$100,000 by the
first anniversary of the JV, or should Metal Tiger fail to expend
the full expenditure by the third anniversary of the JV then:
o if less than US$300,000 of the agreed expenditure, the 50%
interest in the JV owned by Metal Tiger shall revert back to KB
Uranium subject to them exercising a claw-back option;
o if greater than $300,000 of agreed expenditure, KB Uranium
shall have the right to exercise the claw-back option in respect of
Metal Tiger's interest in KB Uranium however Metal Tiger shall
retain a 10% free carry in the Pinewood Portfolio.
For further information on the Company, visit:
www.metaltigerplc.com:
Cameron Parry Tel: +44 (0)207 099
(CEO) 0738
Paul Johnson Tel: +44 (0)7766 465
(Non-Executive 617
Director)
Sean Wyndham-Quin Spark Advisory Partners Tel: +44 (0) 2033 683
Neil Baldwin Limited 555
(Nominated Adviser)
Nick Emerson SI Capital Limited Tel: +44 (0) 1483 413
Andy Thacker (Sole Broker) 500
This information is provided by RNS
The company news service from the London Stock Exchange
END
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