Metal Tiger founder to take over as Kolar Gold CEO

Metal Tiger founder Cameron Parry is taking over the reins at Kolar Gold as the miner also announced it would spend £0.2m on a 9.4% stake in the India-based outfit.

Metal Tiger said it was buying 18.2m shares in Kolar at a price of 1.1p each. It will also get the same number of warrants to buy new ordinary shares in the firm at an exercise price of 2.2p per new share exercisable at any time within 30 months of the placing shares being admitted to trading.

In a third leg of the deal Metal said it had entered into an option agreement for a fee of $25,000 to buy a further 9m existing Kolar Gold shares from its current largest shareholder, at a price of 3.5p per share exercisable on or before 7 March 2017.
Parry will step down from the Metal Tiger board to take up his new role at Kolar.

The new board will start an immediate operational review covering existing exploration interests and various pipeline acquisition opportunities that may be suitable for its business.

Metal Tiger chief executive Paul Johnson said: “We are delighted to announce the investment in Kolar Gold which exposes Metal Tiger shareholders to equity and warrant upside in a clean resource operating company at a modest valuation given the recent resource sector apathy in the markets.”

Kolar Gold reported a loss before tax of £1.254m for the year to June 30 2015 and unaudited net assets of £3.7m at Dec 31 2015, Metal Tiger said.