11th Feb 2016 16:00
LONDON (Alliance News) - AIM-listed Metal Tiger PLC on Thursday said it has agreed to take a 28.25% stake in ISDX-listed ZimNRG PLC, investing GBP50,003 to acquire 19.0 million shares in the resource investing company.
"Metal Tiger is currently working with a number of ISDX and AIM quoted companies to form strategic working relationships and provide a network of channels through which investment initiatives and opportunities can be channelled. ZimNRG (MetalNRG) is the first such relationship to crystallise," Paul Johnson, chief executive of Metal Tiger, said.
"If one assumes we are at or near the bottom in the mineral sector cyclical downturn, then we sit with a tremendous opportunity to create value from natural resource investing opportunities. By channelling some of our energy and ideas into third-party vehicles, in which Metal Tiger holds a material stake, we can continue to drive the value of the Metal Tiger business as a whole," Johnson said.
The investment in ZimNRG is conditional upon approval from ZimNRG shareholders, which would precede a name change to MetalNRG.
Shares in Metal Tiger were up 6.3% at 0.930 pence on Thursday afternoon.
By Samuel Agini; [email protected]; @samuelagini
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