10th Nov 2015 08:08
LONDON (Alliance News) - Metal Tiger PLC Tuesday said it has acquired strategic interests in 14 prospecting licences containing copper and silver in Botswana under a newly formed joint venture with MOD Resources Ltd.
Metal Tiger and MOD have set up the joint venture after "detailed negotiations", whereby Metal Tiger will hold a 30% stake with MOD holding the remaining 70% stake in the new joint venture company, Metal Capital Ltd.
The new joint venture company owns 100% of Tshukudu Botswana Metals, which has signed a deal to acquire Discovery Mines (Pty) Ltd, a subsidiary of Discovery Metal Ltd which entered administration back in February.
Through that acquisition, the joint venture will acquire 14 prospecting licences of "varying status" situated along the Mahumo Structural Corridor, in the Kalahari Copper Belt in Botswana.
Importantly, those newly acquired prospecting licences are adjacent to MOD's existing Mahumo project, which is thought to have around 4.3 million ounces of silver, of which the majority is classed as measured and indicated.
The joint venture has already identified seven priority targets over the 14 new licences which will provide the opportunity for "early, low cost exploration success," said Metal Tiger.
Based on Metal Tiger's 30% stake in the joint venture company that has acquired the licences, it will pay USD100,000 for the deal as its share.
Significantly, Metal Tiger said it will assist MOD in sourcing funding from the UK and Australia to pursue the newly acquired licences in Botswana, but also to progress assets that MOD held prior to the deal.
"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," said Chief Executive Cameron Parry.
Metal Tiger said the deal and the chance to work with MOD provided an "irresistible opportunity".
In addition, Metal Tiger said it remains in "very advanced discussions" about other opportunities in exploration, development and producing projects.
Metal Tiger shares were up 4.9% to 1.13 pence per share on Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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