17th May 2016 10:20
LONDON (Alliance News) - Thor Mining PLC Tuesday said it has conducted a large placing priced a significant discount and also issued warrants to new investors in a move that could lead to its share capital to increase by almost 50%, with London-listed Metal Tiger snapping up a big portion of the shares.
Metal Tiger has acquired around a third of the shares made available under the placing that has been conducted by Thor.
Metal Tiger has agreed to invest GBP100,000 into Thor by purchasing 400.0 million shares at a price of 0.025 pence - a 24% discount to Thor's closing share price on Monday.
The investment company will hold a 6.97% stake in Thor following the transaction, but has the opportunity to increase that stake as it has also been issued with 400.0 million warrants that can be exercised within 30 months at 0.05 pence per share - which is 51% higher than Thor's closing share price on Monday.
"Metal Tiger continues to build a diverse range of natural resource investments around what we believe is the bottoming phase in natural resource microcap and junior equities," said Metal Tiger Chief Executive Paul Johnson.
"Today's investment is another step in our building process and comes at a time when Thor Mining has recently experienced a strengthening of its finances through the sale of Spring Hill thus enabling it to orientate toward existing and potentially new project development," he added.
Importantly, those shares have been purchased under a larger placing conducted by Thor, which issued a total of 1.20 billion shares, including Metal Tiger's shares, at the 0.025 placing price.
The shares were only issued to new investors and raised a total of GBP300,000. All of the shares issued had a warrant attached with the same terms as the ones issued to Metal Tiger.
However, Thor can only issue 336.0 million shares and 336.0 million warrants within its remit, and will need to get shareholder approval to be able to issue the other 864.0 million shares and 864.0 million warrants. A general meeting will be held shortly, but a date has not been set yet.
The 1.20 billion shares issued by Thor would represent 24% of the company's enlarged issued share capital - meaning the share capital could rise by 48% if all of the warrants that have been issued are exercised.
If Metal Tiger exercised all of its warrants then it would double its stake to 13.94%.
Thor shares were up 2.9% to 0.0360 pence per share on Tuesday morning whilst Metal Tiger shares were down 2.6% to 4.09 pence.
By Joshua Warner; [email protected]; @JoshAlliance
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