Natural resources investor Metal Tiger PLC has raised £1.59 million through a share placing to enhance its cash position as it advances mining projects in Thailand, Botswana and Spain. Investors paid 1.5p for each of the 106 million shares with one warrant also issued alongside each share.
Metal Tiger says most of the funds will go towards supporting the development of its copper venture in Botswana and towards the permitting process of its silver-lead-zinc project in Thailand.
It is the largest single sum raised by the company with funds to also be used to allow it 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.
The new CEO, who was only appointed this month in a boardroom reshuffle, said 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 and a rejected offer from BMR Group PLC, which Metal Tigers’ ex-CEO Alex Borelli is also chief executive of.
“Since late November investors have been more focused on corporate events surrounding Metal Tiger, rather than the underlying value in the company’s core projects,” Michael McNeilly said.
The company last week received “exceptionally positive data” from a scoping study at its Kalahari Copper Belt joint venture in Botswana, which estimated that the T3 deposit had a base case net present value of US$180 million.
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,” Michael McNeilly said.