Metal Tiger PLC will delay the planned listing of KEMCO PLC, which will hold its silver-lead-zinc mines in Thailand, until the first quarter of 2018. Behind the delay is speculation as to how the new Thai Minerals Act will impact the new joint venture’s in-country operations.
Metal Tiger is uncertain as to how the Thai National Management Policy Committee will make decisions regarding special mining zones and economic plans.
According to Proactive Investors, the company says it has had strong support for the IPO from family offices and a leading commodities trading house but the feedback has been that more time is needed for assessment of the country’s new mining regime.
Metal Tiger will write to pre-IPO investors requesting that they extend the conversion of their warrants beyond the agreed October 13 date.
The company has also recently appointed Bangkok-based Paragon Partners as its advisor with regard to the consideration and execution of attracting local project financing for its JV in relation to the two silver-lead-zinc mines in Kanchanaburi province.
In a statement, Metal Tiger said, “The engagement would be novated to the proposed listco KEMCO PLC should an IPO of Metal Tiger’s Thai JV be realised.”
It said the appointment would enable the project to be known to the financial community in Thailand and provide strategic advice on the best approach for local project financing.
Paragon has provided solutions to more than 60 clients over a 20 year period, including many international clients and clients in the mining sector, with a combined transaction value of over US$3.0 billion.
Metal Tiger has interests in two potentially near-production stage silver/lead/zinc mines as well as licences, applications and critical historical data covering antimony, copper, gold, silver, lead and zinc opportunities.
The Boh Yai and Song Toh silver-lead-zinc mines and processing plant are in the Silver-Lead-Zinc Belt of western Thailand. The mines, which are 14km apart, have had a successful operating history and only closed due to poor metal prices.