Metal Tiger reports return of 625% on MOD Resources

The AIM-traded company currently holds 67,833,333 shares in the ASX-listed MOD, valued at present at AUD 3.26m based on Friday’s closing price in Sydney of AUD 0.048.

Metal Tiger also holds 29,166,666 warrants with an exercise price of AUD 0.01, expiring on 1 May 2018, and 1,541,667 warrants with an exercise price of $A0.06, expiring on 15 April 2019.

The firm’s paper margin at present on in-the-money warrants amounts to AUD 1.11m.

Its board said the total value of its equity holdings in MOD, together with the paper margin on warrants is approximately £2.59m against an original total acquisition cost of £0.31m.

Metal Tiger said it is therefore currently showing a paper gain of £2.27m on its investment, representing a return of circa 625% to date.

The company also holds a 30% interest in 14 licences in the Kalahari Copper Belt in Botswana, in joint venture with MOD Resources.

It said the venture is currently in an active exploration phase in Botswana, with assay results and general exploration updates now being provided to market on a regular basis.

The project activities include resource drilling to enable the quantification of a maiden resource at the T3 project in the near term.

“We are pleased to confirm the valuation uplift in our holding in MOD Resources,” said Metal Tiger CEO Paul Johnson.

“The uplift in the MOD Resources share price has been achieved through market recognition of the significant copper/silver discovery in Botswana announced earlier this year and the substantial flow of positive exploration data that has been published to the market thereafter.”