Metal Tiger Plc is advancing due diligence concerning a proposal to acquire 90% of South East Asia Mining’s assets in Thailand. The company has confirmed that it is now possible to proceed with the acquisition.
In November Metal Tiger agreed an option deal to acquire 90% of South East Asia Mining, though the deal was subject to a number of conditions including approval of that company’s shareholders.
At a meeting on January 12 the proposed transaction was given the go-ahead by South East Asia Mining shareholders and subsequently Metal Tiger says it is now moving forward with the deal.
Due diligence work continues and Metal Tiger staff have been on the ground in Thailand to determine the technical and commercial viability of the deal.
“Progress with due diligence has been very positive to date from a technical perspective and whilst we remain optimistic that this transaction will proceed as planned, there can be no guarantee at this time that Metal Tiger will elect to exercise the option,” the company said in a statement.
“We are continuing to complete a number of standard due diligence steps and will report back to the market in due course.”
Metal Tiger paid US$30,000 in November, and an initial US$500,000 is payable if it decides to take up the option.
Earlier this month AIM-listed Metal Tiger informed investors that it would soon publish a full review, mapping out its plans for 2016 and strategy to capitalise on last year’s progress.
The company has a direct projects unit along with an equities division and spent last year building a low cost, diverse portfolio of mining interests.
Undeterred by tough market conditions, it has been proactive in taking advantage of undervalued opportunities instead of simply waiting it out for a commodity price upturn.
Progress has been made building the projects division with JV agreements for gold/tungsten in Spain and gold/uranium in Tanzania; adding to the existing Thailand gold/antimony project.
Meanwhile, the company has also seen gains across its direct equities unit, which holds Ariana Resources, Kibo Mining, Eurasia Mining and ECR Minerals. Most recently Metal Tiger agreed a new JV with MOD Resources focused on copper and silver in the Kalahari Copper Belt, Botswana.