Metal Tiger raises £1.1m in placing and subscription

The AIM-traded company said the placing and subscription of 28,571,428 new ordinary shares in Metal Tiger was at a subscription price of 3.85p per ordinary share.

It also issued 28,571,428 warrants to subscribe for the same number of new ordinary shares in at an exercise price of 7.70p per warrant, within a 12 month exercise period.

The placing was undertaken with high net worth investors, with several existing investors and also new holders of Metal Tiger stock.

Its board said the funding will be used to augment existing underlying working capital for strategic project developments in Spain and Thailand, and to support an acceleration and expansion of the company’s Botswana investing activities.

“Metal Tiger has now demonstrated on two occasions in 2016 an ability to raise £1m-plus at or around the market price at the time the placing was agreed,” said CEO Paul Johnson.

“This is testament to the strength of the company’s growing support, the hard work of the team and the dedication of our brokers SI Capital.

“Of most significance however is the commitment and financing capability of the placees who have supported this strategic financing exercise,” Johson explained.

He said Metal Tiger is in a highly robust working capital position, and that prior to the placing it had working capital of cash and tradable equities and warrants exceeding £4m.

“This placing of £1.1m adds material additional working capital at a significant point in the company’s development.

“Metal Tiger is expanding our investing activities at pace and the additional cash resources provide the company with the enhanced firepower to accelerate activities in a confident and proactive manner,” Johnson said.

“Cash is the lifeblood of a company such as Metal Tiger, and the demonstrable ability to raise properly priced additional finance sends a vital message to the market and to those with whom we engage as we seek to grow our business.”

He explained that the additional cash raised specifically enables the Company to push forward with an expansion of its investing activities in Botswana, where with joint venture partners MOD Resources it is working to accelerate drilling, delineate a maiden resource at T3 and build its knowledge of the wider regional mineralisation across multiple targets within the licence areas.

“Metal Tiger continues to strengthen and we anticipate a series of news flow in the coming days and weeks from across our business.”