Metal Tiger puts £0.29m into First Light Capital

The AIM-traded firm said First Light entered into a definitive agreement with New Oroperu Resources on 16 June, to combine entities and form Anacortes Mining, which it described as a new, growth-orientated gold company in the Americas.

Anacortes would initially be focussed on continued exploration and advancement of the Tres Cruces gold project located in Peru.

“Tres Cruces is one of the highest-grade oxide deposits globally and hosts oxide plus sulphide indicated resources of 2.474 million ounces at 1.65 grams of gold per tonne, and inferred resources of 104,000 ounces at 1.26 grams per tonne, inclusive of 630,000 ounces of high-grade leachable gold at 1.28 grams per tonne,” the board said in its statement.

The investment formed part of a capital raise by First Light of CAD 22m.

“The placement was met with demand from institutional, high net worth, and retail investors,” Metal Tiger added.

Following the fundraise and completion of the business combination, the units will convert and Metal Tiger would hold 1.25m common shares in Anacortes, which would represent around 0.5% of the enlarged share capital.

Metal Tiger would also receive 625,000 warrants, exercisable within two years at a price of 55 Canadia cents.

For the quarter ended 31 March, New Oroperu reported net assets of CAD 2.04m and a net loss of CAD 0.26m.

Net assets at quarter-end totalled CAD 1.98m, and its net loss came in at CAD 0.23m.

At 1519 BST, shares in Metal Tiger were up 6.6% at 25.85p.