Metal Tiger PLC has completed the pre-flotation financing of its new Thai mining joint venture which will be called Kemco. The financing with high net worth investors raised £514,000, payment of which will be triggered when the company lists on AIM.

The price is a 20% discount to the likely float price with the new investors also to get a warrant convertible at a 50% premium.

Metal Tiger and Kemco directors put in £67,000 of the money, which will fund the IPO costs and provide working capital for the Thai operations.

Since January, Metal Tiger has provided an additional £590,000 to Kemco to cover its costs.

Metal Tiger says the float will be the first IPO of a Thai operation on the London Stock Exchange. It is looking to raise between £3 million and £4 million from the listing.

A new Minerals Act is expected to come into force in Thailand by the end of August, which the company believes will aid permitting of the two mines that make up the joint venture, Boh Yai and Song Toh in Kanchanaburi Province.

Metal Tiger’s chief executive Michael McNeilly said the new act was signed ahead of expectations and underlined the Thai Government’s long term commitment to the extractive industry. “We look forward to continuing to work closely with our Thai JV partners to make the IPO a success.”

The group has an effective 78% interest in the mines, which are brownfield historical silver, lead and zinc mine sites. They have become more attractive given the surge in lead and zinc prices.

Metal Tiger says the mine plan for the projects is substantially complete, while an updated resource is progressing, which will lead to a further update on the mine plan. Work towards an environmental impact assessment report is under way, as is data collection for a water study.

Michael McNeilly said, “The management team for the Thai Joint Venture has significant in country project development and operating expertise and this is proving invaluable and being demonstrated through the progress occurring to complete the studies before the envisaged IPO.”

www.metaltigerplc.com

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