16th Feb 2016 08:37
LONDON (Alliance News) - Metal Tiger PLC on Tuesday morning said it has exercised an option to acquire a number of licence applications in Thailand.
Metal Tiger said it has exercised an option to acquire the remainder of South East Asia Mining's interest over numerous assets in Thailand. Metal Tiger already said it planned to exercise the option last November.
"We are delighted to announce the exercise of this option which sees Metal Tiger acquire 90% of the entire South East Asia Mining Thailand portfolio and which provides the company with a significant portfolio of precious and strategic metal interests in Thailand," said Paul Johnson, chief executive of Metal Tiger.
"With this acquisition now undertaken, our focus moves to building on this foundation by investing in work on the ground in our existing interests and by adding new opportunities that offer material value upside for shareholders," he added.
The assets in question include eight special prospecting licence applications in western Thailand that surround the historical mining operations at the Boh Yai and Song Toh silver, lead and zinc mines. It also includes two mining lease applications covering the historical Kanchanaburi mining lease applications, Metal Tiger said.
The deal also includes one exclusive prospecting licence application covering a project focused on gold and antimony in the Chanthaburi province in the south east of Thailand, alongside a mining lease application covering the same province.
Lastly, two further special prospecting licence applications covering 31 square kilometres and relating to projects in the Nakon Sawan and Lopburi provinces are included.
An exploration and mining database covering the Boh Yai and Song Toh mines is also part of the deal.
Metal Tiger will hold a 90% interest in all those applications after a 10% interest was disposed by South East Asia Mining to a local operating company.
Metal Tiger has paid an initial consideration of USD500,000, which has been paid through a combination of cash and shares. Metal Tiger has paid USD200,000 in cash from existing resources and issued South East Asia Mining with 23.8 million shares in Metal Tiger priced at 0.87 pence each.
Metal Tiger said a further payment of USD100,000 and a USD60,000 working capital contribution could be made to South East Asia Mining in the future, alongside a potential issue of 23.8 million warrants covering shares to South East Asia.
Those potential payments rely on South East Asia being granted its primary target prospecting licence 1/2557 in the Kanchanaburi province in western Thailand, the company said.
Metal Tiger shares were down 1.9% to 0.908 pence per share on Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
MTR.L