2nd Sep 2014 08:58
LONDON (Alliance News) - Metal Tiger PLC Tuesday said it had agreed to buy a stake in Thai Star Resources Co Ltd for no consideration and said it would change the name of its UK subsidiary in preparation for a potential new investment.
The South East Asia-focused mining company said it would take over the shareholding of Black Star Gold Pty Ltd in Thai Star Resources for no money. The company said that though it will hold a 49% stake in Thai Star, the capital structure of the business will give Metal Tiger effective voting and economic control of the business.
The further expansion of its Thailand business comes after Metal Tiger in July signed a memorandum of understanding with South East Asia Exploration & Mining Company Ltd, a Thailand-based mining and exploration firm and a unit of Canada-based Southeast Asia Mining Corp (SEAM).
Under the agreement, Metal Tiger will pay USD10,000 in cash up front to SEAM to provide a 90-day window for Metal Tiger to complete due diligence and finalise a joint venture with the firm. That joint venture has been created in order to allow Metal Tiger to acquire interests in exploration applications in the Nakon Sawan, Lopburi and Chanthaburi Provinces in Thailand.
The company said it expects to execute the joint venture within the 90-day exclusivity period granted in July.
Metal Tiger also said on Tuesday it would change the name of its UK subsidiary, Brady Explorations (Operations) Ltd to Metal Horse Ltd. It said the move had been made in preparation for its next investment, in line with its update in July that, though it is focused on South East Asia, other regions and opportunities are being considered.
Metal Tiger shares were untraded on Tuesday, quoted at 0.725 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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