Metal Tiger Share Discussion Threads

[someuwin] 16/3/2017 12:27

Metal Tiger lines up a summer listing for Thai subsidiary

It’s looking like a summer IPO for the Thai mining interests currently held by Metal Tiger PLC (LON:MTR).

The plan, according to Metal Tiger’s chief executive Michael McNeilly, is to raise between £3 mln and £4 mln from investors in London and Asia, following the results of consulting work that will provide a detailed economic appraisal of the properties.

“We’re targeting an IPO in June or July,” he says.

“We’re going through the process of completing all the key reports. SRK is working on a Competent Person’s Report and reviewing the resource update. Hopefully the first draft of that will be done by the end of the month and then by late April we will be able to put out the economic numbers of the project.”

The primary assets are two underground silver-lead-zinc mines which were worked between 1978 and 2002, and for which considerable infrastructure remains in place, including a plant.

Because of this, the restart of the project will not be too capital intensive, and the main risk moves over to permitting.

Here, the implications of a new mining act that’s coming into force later in the year will have to be studied, but it’s worth noting that Thailand has had a relatively active mining industry, with tin in the south and continues to have active phosphates and aggregates mining elsewhere.

Metal Tiger itself has been in-country only a short while, but has always professed itself at ease working in Thailand. And he’s not the only one.

“There are a lot of mining people in Asia who are comfortable with how Thailand works,” says McNeilly.

So, with that in mind, and with the mining markets on the turn, it’s perhaps no surprise that Metal Tiger has just been able to secure just over £500,000 in pre-IPO money for KEMCO PLC, company that will be used as the listing vehicle.

This pre-IPO money isn’t coming in just to turn a fast buck on listing. On the contrary, the deal was set up such that the new investors now have two sets of warrants, one to convert to shares at 20% below the listing price, but one which converts after at 50% higher than the listing price.

So there is both motivation and expectation of a strong performance, and it’s noticeable that Metal Tiger directors, including McNeilly are now on the KEMCO register with personal stakes.

But what will the company do once it’s come to the market?

“This is a brownfields site,” says McNeilly. “There’s exploration upside. There’s been no exploration at depth. It’s already a very advanced project.”

Indeed, back in 2013 independent consultants demonstrated that as a foundation, KEMCO could work to a combined NI 43-101 resource of 4.85 mln tonnes, comprising 2.9 mln tonnes of 3.57% lead, 2.82% zinc and 72.63 grams per tonne silver in the indicated category, with a further inferred resource of 1.96 mln tonnes grading 2.95% lead, 3.08% zinc and 49 grams silver.

This information will now be fed into the new calculations that are currently being put together.

A previous report published in 2013 mentions the previous capital cost estimate of US$13 mln, but McNeilly says that the company with SRK’s advice will be “revisiting” that figure.

“In April we will have an update that we can rely on,” he says.

After that there’ll be a concerted marketing campaign ahead of the listing.

Metal Tiger is likely to retain at least 51% of the newly listed vehicle, so existing shareholders will retain a significant part of the upside. But they’ll also be able to take some money off the table as a distribution in specie is planned.

After that the focus will turn more squarely onto the company’s copper assets in Southern Africa. But that’s another story.

[someuwin] 16/3/2017 10:38

Yes - very positive!

[dr jekyll] 16/3/2017 10:35

Dreamtwister,

That was a very interesting read . Thanks for posting it.

[dreamtwister] 16/3/2017 09:51

hxxp://www.mining-journal.com/copper-investor-hub/copper-investor-hub-resourcestocks-company-profiles/t3-drilling-success-forcing-mod-rethink/


T3 drilling success forcing MOD rethink
MOD Resources (AU:MOD) is busy sizing up the potential at its many “T” named prospects around the spectacular T3 copper project in Botswana. The company aims to have T3 in production within 18 months and has just found significant mineralisation underneath the resource. The Copper Investor Hub caught up with managing director Julian Hanna.

Staff reporter
14 Mar 2017
19:46
Company Profile

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MOD may have to consider upscaling its proposed 2Mtpa sulphide flotation plant for T3
MOD may have to consider upscaling its proposed 2Mtpa sulphide flotation plant for T3
Related content

A new road for Botswana copper
MOD nails $5.5m to progress T3
T3, Botswana: 72.6m grading 1.5% Cu and 27g/t Ag from 250m (MO-G-65D)
MOD confirms promise of Botswana site
MOD copper promise below T3

TOPICS (select for more information):
Julian Hanna T3CopperBotswanaMOD Resources

Copper Investor Hub: MOD has just intersected a substantial, new 72m copper zone directly beneath the existing T3 resource, which is part of a large joint venture with AIM-listed Metal Tiger Plc (30%). What does this new discovery mean for T3’s planned development?

Julian Hanna: Last time we spoke to the Mining Journal, MOD had just established the T3 maiden resource. Literally in the last few days, we drilled a hole underneath T3 and intersected a wider zone, 72.6m of mineralisation grading 1.5% copper and almost an ounce of silver. That’s generated a huge amount of interest because this is right under the planned T3 openpit that we plan to develop in 18 months’ time, so a big rethink is afoot.

In addition to drilling out the new deeper zone, we’re trying to stick to the current development timetable that aims to see us in production around mid-2019. MOD has a fine team working on the PFS now so we’ll just have to work them harder! There are early indications this particular intercept may have a true width as much as 50m right under the centre of the planned pit. Subject to further drilling, this could potentially have a significant impact on how we go about developing T3.

In light of this new zone, we may have to consider possibly upscaling the proposed processing plant and production rate, which are conversations that are starting already.

Copper Investor Hub: T3’s maiden resource was established within six months of discovery, containing 350,000t of copper and 14Moz of silver and the already robust scoping study estimates a 10-year mine life for an openpit operation with a cash cost of US$1.29/lb. How is the pre-feasibility study progressing and are there any areas of particular focus?

Julian Hanna: The scoping study in December indicated a very robust project based on the resource we had at that time. The discovery and drill-out cost was a modest A$0.0022 a pound of copper, which I think may be one of the best in class.

The scoping study was based on a 2Mtpa production rate and early stage feasibility studies are progressing on a number of fronts. However the scope of the current PFS may change depending on the ongoing deeper drilling program.

MOD has commenced the permitting process with flora and fauna studies underway and borefield testing for a potential source of processing water on site planned to start soon. If this is successful and water is sourced at T3, this should be a huge benefit to the project.

Existing infrastructure in the region is very good, with a sealed two lane highway only 12km from site and the substantial town of Ghanzi approximately 80km away from T3. Botswana Power Corporation has advised that they plan to have grid power down the highway by 2020 running past T3, but in case that doesn’t meet the deadline we’ve allowed for a diesel generator power station on site.

Bonanza grade Cu/Ag in bornite, chalcocite and chalcopyrite veins

Copper Investor Hub: The copper price has risen about 25% in the past six months – where do you see demand for copper headed as T3 goes further down the path towards development?

Julian Hanna: The storm clouds are gathering over copper supply in my book – declining global grades, declining quality, increasing energy costs, and political issues seem likely to impact near term supply.

What we have in Botswana is different, it’s not a low-grade porphyry-hosted deposit with high capital required, it’s not a flashy VMS-type deposit with a limited mine-life; instead T3 is a sediment-hosted sulphide deposit which occurs at shallow depth within a large virtually unexplored area. T3 has lifted the lid on the potential of MOD’s extensive holdings. There’s also a strong mining culture in Botswana, we have a committed, experienced and wonderful team on site and we couldn’t ask for a better jurisdiction to be operating in.

Copper Investor Hub: Some 20km to the north of T3 lies the T1 (Mahumo) project, which contains a stage one resource of 2.7Mt grading 2% copper and 50g/t silver. How is the evaluation of the potential underground mine at T1 advancing and has it slipped in terms of priorities?

Julian Hanna: No, we have a study underway re-evaluating the underground potential at T1, and we’re planning on expanding the drilling to increase the current resource. Although T1 doesn’t have the width of T3, it has high copper grades with good silver credits. The target is to get the resource to 10Mt which we consider may be sufficient for a potential underground mine that could be a satellite to supply the planned T3 plant.

Copper Investor Hub: Of the many exploration targets in the surrounding joint venture area, which do you believe warrant the most attention?

Julian Hanna: MOD employs many geologists and we all have our favourites! Apart from T3, I like T5, it’s a deep but very large target, T7 where we are currently drilling and T20 just west of our operations base in Ghanzi. They all have the right magnetic characteristics and we’re about to put them to the test.

The guys on site are rapidly gaining an understanding of the geology of T3 and starting to look elsewhere along the main structural corridor for the next T3.

The T3 project area alone is 1000sq.km of very prospective ground, the first stage of a high-tech 3D IP survey has been completed and this has generated some very interesting drilling targets. We look forward to getting that exploration underway soon.

Copper Investor Hub: Contango Funds Management has just upped its stake in the company to more than 7% and MOD’s shares hit a six-month high in early March. What is helping garner interest?

Julian Hanna: Institutional investment interest in MOD has grown rapidly both in Australia and offshore which is encouraging. MOD’s market cap is now north of A$100 million (US$75 million) which we hope will attract more interest in the company.

It’s difficult to speculate on recent comparisons to other ASX-listed copper producers but I think the assets we have in the Kalahari Copper Belt are quite significant, and not just at T3.

Copper Investor Hub: Finally, MOD has flagged selling its some or all of its 80% interest in the 1 million ounce Sams Creek gold deposit in New Zealand although you’ve just extended your licence there, does this project fit in the company’s future?

Julian Hanna: We’ve made it clear MOD is looking to divest its interest in Sams Creek. There are a number of interested parties looking at it now and although it’s a very interesting project, there are clearly no synergies between Sams Creek and what we’re doing in Botswana. So it’s a distraction from the main game and what we see as a huge opportunity for MOD in Botswana.

[johnyee 7] 16/3/2017 07:32

Something in shares mag today about mtr.

[temmujin] 16/3/2017 05:27

glencore or rio will take this baby out soon...sitting duck

[scarymonster] 15/3/2017 23:17

How much of our investment is in MOD?

Edit: Ok just seen on the website.

Don't believe any take out rumours until they happen as 99.9% of the time they are absolute BS.

[brando69] 15/3/2017 23:17

... by a delusional British PI who asked them if they could confirm rumours they were subject to a takeover bid.

#waltermitty
#keeptakingthepills
#rumourmonger

[temmujin] 15/3/2017 23:14

heard a rumour tonight that MOD have been approached

[paleje] 15/3/2017 19:13

Well you could be right defcon3 but if the article is correct the amount is just over £9m so to maintain our 5% shouldn't be too demanding as the purpose is to accelerate value appreciation, not to keep the lights on. More assay results must be close too and MOD could have an entirely new value.

[defcon3] 15/3/2017 18:31

I expect MTR will do a discounted placing to keep their stake in MOD

[paleje] 15/3/2017 09:11

The raise is already open news apparently, are we taking part I wonder.."Shares were being offered at 6.2¢ each which was a 16.2 per cent discount to the last close ad a 2.2 per cent discount to the 15-day volume weighted average price.."


STREET TALK Mar 15 2017 at 2:16 PM Updated Mar 15 2017 at 2:16 PM
Copper play MOD Resources is in a trading halt while its broker drums up interest in an equity raising.
Copper play MOD Resources is in a trading halt while its broker drums up interest in an equity raising. Oliver Bunic
by Sarah Thompson Anthony Macdonald Joyce Moullakis
MOD Resources is seeking to raise $14.6 million in a share placement through Blue Ocean Equities.
The broker contacted potential investors on Wednesday, seeking bidders for the new stock.
Shares were being offered at 6.2¢ each which was a 16.2 per cent discount to the last close ad a 2.2 per cent discount to the 15-day volume weighted average price.
Funds raised were to pay for exploration in the 2017 calendar year.

The broker was seeking bids by midday on Thursday.

[uknighted] 15/3/2017 08:47

An Announcement regarding capital raising.

[temmujin] 14/3/2017 23:26

BOOM! TRADING HALT IN AUS! pending an annoucement

[uknighted] 14/3/2017 18:51

An educated comment and a ramp from Jekyll and Hyde!

[thelung] 14/3/2017 12:05

Two massive IF's :-) but thanks for posting

[paleje] 14/3/2017 11:42

IF you believe in charts at this level, and IF you think Zak Mir has a clue what he's doing, his missive of last night will please:-

Metal Tiger: Break of 200 day line points to 4p

[someuwin] 13/3/2017 11:47

TheLung - this is the code for the above chart. Just change 'mod' to whaever asx epic you want...

<img src="http://uk.advfn.com/p.php?pid=staticchart&s=ASX%5Emod&t=8&p=0&amp;dm=0&vol=1"&gt;

[dr jekyll] 13/3/2017 11:41

Thanks someuwin. Useful to see that.