13th Jan 2016 08:59
LONDON (Alliance News) - Metal Tiger PLC Wednesday said it has made an investment in MOD Resources Ltd, its partner on the Kalahari copper project in Botswana, to strengthen ties between the two companies.
Metal Tiger acquired strategic interests in 14 prospecting licences containing copper and silver in Botswana back in November after it set up a joint venture with MOD to focus on the prospecting licences of "varying status" situated along the Mahumo Structural Corridor in the Kalahari Copper Belt.
When that venture was originally formed, Metal Tiger held a 30% stake with MOD holding the other 70%.
On Wednesday, Metal Tiger said it has invested AUD350,000 to acquire 58.3 million shares in MOD, giving it a 4.92% stake in the company at a corporate level. Metal Tiger was also awarded 29.2 million warrants to subscribe for further shares at a price of AUD0.01 per share before May 2018.
"The board of Metal Tiger see this as an important strategic investment which complements its joint venture partnership in respect of the Kalahari Copper belt project in Botswana," said the company.
"The investment strengthens the link between the two joint venture partners and provides Metal Tiger an enhanced upside should the Botswanan interests of Metal Tiger and MOD progress well and in line with expectations," it added.
The 14 prospecting licences covered by the joint venture 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.
Metal Tiger originally agreed to 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, with Metal Tiger describing the joint venture opportunity as "irresistible".
Metal Tiger shares were up 1.2% to 0.820 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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