Metal Tiger plc has concluded commercial negotiations resulting in the signing of a joint venture agreement (JVA) in respect of the Song Toh and Boh Yai Silver-Lead-Zinc mines in western Thailand. The JVA was subject to certain regulatory clearances which were received on August 22.
The JVA governs the process and ownership elements of a transaction where the principal objective is to permit and bring back into production the silver-lead-zinc mines at Boh Yai and Song Toh.
The other parties to this JVA are the Kanchanaburi Exploration and Mining Company Ltd (KEMCO), Boh Yai Mining Company Limited (BYMC) and Pornnaret Klipbua, the majority and controlling shareholder of both KEMCO and BYMC.
KEMCO and BYMC hold several Historical Mining Lease Applications and the physical mining and processing plant assets at the centre of this transaction.
Metal Tiger CEO Paul Johnson said, “We are delighted to confirm a successful outcome to our contractual negotiations and this signed JVA. The Boh Yai and Song Toh mines represent an exceptional opportunity for all parties to this agreement and we look forward to the JV pushing proactively forward.
“The JV will be proactively pursuing the various stages of the permitting process and the structure of the transaction is such that near-term transactional costs are modest, with the larger payments scheduled for post permitting approvals when the inherent value of the project should have increased materially.
“A transaction of this type, in effect a collaboration between Thai interests and a UK-listed entity, are relatively rare at the moment. Given our knowledge of the Thailand business environment, and the opportunities available, we are very pleased to reach this pivotal stage.”
Paul Johnson said the JVA represented the culmination of a significant amount of work by all parties. “Metal Tiger would like to note on record its thanks for the dedication and support of all the parties engaged in this process of negotiations.
“Metal Tiger is privileged to be investing in Thailand, a country that holds substantial opportunities for respectful, diligent and committed investors. We would reiterate that our objective is to invest in and help develop Thai resource opportunities, for the primary benefit of the Thai people, and to do so with an absolute focus on the protection of the environment and the communities with whom we engage.
“As part of our communications and in addition to the engagement we are undertaking in Thailand we will be holding meetings in the UK with our Thai JV partners and Corporate Social Responsibility manager present, to enable any shareholders, investors and other market participants to have their questions and queries addressed in a public forum.”
KEMCO and BYMC managing director Pornnaret Klipbua said, “I am delighted with the successful outcome following extensive negotiations with Metal Tiger and their Thai joint venture partners.
“Metal Tiger with their financing capability and their Thai JV partners with their sector and in-country knowledge have demonstrated to me that they have the requisite abilities to make this a highly viable partnership and I look forward to diligently working with them to successfully permit and bring back into production the Song Toh and Boh Yai Silver-Lead-Zinc mines.
“This is an exciting project that will provide hundreds of jobs in Kanchanaburi and be of major benefit to the local Thai economy as well as the Thai people in general. It is my firm belief that this partnership will lay the foundation for further investment opportunities for Metal Tiger in the natural resources sector in Thailand,” he added.