10th Oct 2014 13:13
LONDON (Alliance News) - Metal Tiger PLC Friday said it has entered into an option agreement with two companies for an exploration license based in the Navasfrias area of the Salamanca Province in north-west Spain.
The company has entered into the option agreement with Qbis Resources SL, a private Spanish company, and Diversified Asset Holdings Pty Ltd, a private Australian company. The option provides Metal Tiger with the opportunity to secure a tenement area, which is already licensed for exploration.
The three-year license was granted to Qbis in 2013 and is targeting gold, with potential for tungsten and tin to be found, said Metal Tiger.
Under the agreement, Metal Tiger has paid USD20,000 in cash upfront to provide a 60 day exclusivity period, to be followed by the company formalising the deal at its discretion with the two other companies.
If the joint venture goes ahead, Metal Tiger will obtain an 80% stake and be obliged to pay a maximum of GBP1 million to Qbil and Diversified, consisting of GBP200,000 in cash and GBP800,000 through issuing 64 million shares at 1.25 pence per share. Metal Tiger shares were untraded on Friday at 0.950 pence per share.
The company will also have to invest an additional GBP500,000 in cash by the end of the 18 months of exploration and development at the site. Metal Tiger will need to raise further funding in order to meet this commitment and is currently considering its options, it said in a statement.
"Having known the key prospector behind the license [Qbis] for many years, and having inspected the site with my fellow directors, we are confident that the licensed area provides suitable exploration opportunity with good potential and prospects for the company," said Chairman Terry Grammer.
By Joshua Warner; [email protected]; @JoshAlliance
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