19th Mar 2021 11:46
(Alliance News) - Metal Tiger PLC on Friday signed an agreement to invest in Armada Exploration Ltd, which holds two exploration licences in Gabon that are prospective for magmatic nickel-copper sulphide.
The natural resources focused investor has subscribed for 5.0 million Armada shares at 15 US cents each, or USD750,000 in total, through a promissory note, with USD350,000 to be paid upfront, and USD400,000 to be paid in monthly instalments over the next five months.
Following this investment, Metal Tiger will hold a 19% interest in Armada. It also will receive 3.3 million 36-month options issued at 22.5 US cents within five business days following completion.
Armada itself is planning to conduct a drilling programme over 18 targets within both licences, which cover a total area of 3,000 kilometres, in the second half of 2021.
Armada also is targeting an initial public offering to coincide with mobilising the drill rig, though it didn't say on which stock exchange.
"We are pleased to invest in Armada, which presents a district scale opportunity with compelling geology. This frontier is significantly under-explored, which makes it so exciting, and we welcome the longer-term proposal for Armada to undertake an IPO," said Metal Tiger Chief Executive Officer Michael McNeilly.
"Armada has completed significant work to create a compelling geological model that has delineated multiple drill-ready projects. Should the initial work programme prove successful it has the potential to create significant value uplift across all of the untested targets and increase the overall attractiveness of the district," McNeilly added.
Shares in Metal Tiger were up 3.0% at 21.37 pence on Friday in London.
By Dayo Laniyan; [email protected]
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