Metal Tiger announce the acquisition of ASX Listed MOD Resources Limited
Metal Tiger, the natural resources investing company is pleased to announce the acquisition of a strategic interest in prospecting licences situated along the Mahumo Structural Corridor, in the Kalahari Copper Belt in Botswana, in Joint Venture with ASX Listed MOD Resources Limited.
The acquisition represents the conclusion of a number of months of detailed negotiations, alongside MOD, to acquire the new interest from the administrators of Discovery Metals Limited, which was placed into voluntary administration in February 2015. The agreement is subject to execution of a deed of release following payment and other conditions precedent including approval by the Botswana Competition Authority and Botswana Ministerial consent.
The new interests provide Metal Tiger with exposure to a valuable strategic holding in the highly prospective Kalahari copper belt and working alongside MOD who are experienced in-country operators and have achieved significant success in their work to date.
We would draw readers attention to the full announcement relating to this commercial transaction which can be found on the MOD Resources website at http://www.modresources.com.au or the MOD Resources ASX website page at http://www.asx.com.au/asx/research/company.do#!/MOD.
- Metal Tiger has agreed a new Joint Venture with MOD Resources focused on the acquisition and development of highly prospective Copper/Silver interests in the Kalahari Copper Belt, Botswana;
- UK Joint Venture ("JV") Vehicle established (Metal Capital Limited) which is owned 30% Metal Tiger and 70% MOD Resources and through which all JV interests will be held;
- Metal Capital Limited owns 100% of Tshukudu Botswana Metals ("TMB") which has now signed an agreement to acquire Discovery Mines (Proprietary) Ltd ("DMI") subject to certain conditions precedent including execution of a deed of release in relation to existing security over DMI shares and Competition Authority approval and Ministerial consent in Botswana to transfer DMI shares;
- DMI holds 14 prospecting licences of varying status adjacent to MOD's Mahumo Project and covering the prospective 100km long Mahumo Structural Corridor;
- 7 priority targets identified provide opportunity for early, low cost exploration success;
- Metal Tiger will fund initial payment of US$100,000 required to undertake the transaction. This payment secures Metal Tiger's 30% interest as outlined above;
- Metal Tiger and Patersons Securities to assist MOD source funding in the UK and Australia to pursue Botswanan operations, including assets previously held by MOD prior to this transaction.
Cameron Parry, CEO of Metal Tiger commented: "Metal Tiger is delighted to announce the acquisition of its 30% interest in this Botswanan Copper/Silver project, which adds materially to the Company's Direct Projects portfolio.
Metal Tiger's opportunity to participate was identified and introduced by Chairman Terry Grammer, through his long standing association with MOD Resources Managing Director, Mr Julian Hanna. Terry and Julian were two of the co-founders of ASX-listed Western Areas NL in 2000 and Julian was Managing Director for 12 years as Western Areas went from a valuation of less than A$10 million (i.e. £5 million) to become an ASX Top 200 company and Australia's third largest nickel mining company capitalised at more than A$800 million.
The commercial opportunity and substantial geological potential of the target, coupled with the chance to work with Julian and his team at MOD, made this an irresistible opportunity. Today's announcement reflects the crystallisation of the transaction after extensive preparatory work by our partners, MOD Resources, and the Metal Tiger team over past months.
We are grateful for the efforts of MOD as well as the various professional partners who have assisted this transaction and to the Botswanan authorities with whom we look forward to working, to assist future economic growth locally and regionally.
Strategically this opportunity is highly significant for Metal Tiger and means our shareholders now have exposure to the unique Kalahari Copper Belt where the recent corporate activities of certain other mining companies have highlighted the interest and potential.
Alongside our partners MOD Resources we will endeavour to bring regular and detailed updates to market as ground operations commence.
This acquisition complements and diversifies Metal Tiger's existing Spanish, Thai and Tanzanian interests and is an important Joint Venture as we build a strong, diversified and substantial resources investing company.
In addition to this key acquisition, Metal Tiger remains in very advanced discussions with regard to a number of other exploration, development and production opportunities. We look forward to providing further updates to market as and when transactions crystallise."