Metal Tiger plc Term Sheet Signed with Sprott Private Wealth LP for GBP3.0 Million Financing

 
TIDMMTR 
 
 

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Metal Tiger Plc

("Metal Tiger" or the "Company")

Term Sheet Signed with Sprott Private Wealth LP for GBP3.0 million financing

Metal Tiger (LON: MTR), the natural resources investing company is pleased to announce that it has signed a term sheet and engagement letter with Sprott Private Wealth LP ("Sprott") as exclusive agent for and on behalf of Metal Tiger plc, as part of a GBP3 million private placement (the "Offering"). The net proceeds from the Offering will be used to fund Metal Tiger's portion of its commitment to 2017 budget for its Joint Venture ("JV") project with partners MOD Resources (ASX:MOD) in the Kalahari Copper Belt in Botswana (30% Metal Tiger / 70% MOD Resources) as well as for working capital and general corporate purposes.

Shareholders should note that the Offering is conditional on certain conditions being met before the closing date of 17 April 2017 ("the Closing Date"). If these conditions are not met by the Closing Date, the Offering may not occur and Metal Tiger may not raise the GBP3m. The Closing Date may be changed upon mutual agreement of Sprott and Metal Tiger.

Terms of the Offering:

 
 
    -- 100,000,000 units of the Company (the "Units") at a fixed price of 

GBP0.03 per unit (GBP3,000,000).

 
    -- Institutional investors are expected to subscribe for the majority of 

the placing and the Offering will close at 4pm EST on the date of this

announcement. Metal Tiger may at its discretion, should the Offering

be oversubscribed, elect to accept a larger fundraise than GBP3,000,000.

 
    -- The closing date of the fundraising is expected to be on or around the 

17 April 2017 and will be subject to certain conditions highlighted

below (the "Closing Conditions").

 
    -- Each Unit will consist of one ordinary share in the capital of the 

Company (an "Ordinary Share") and one Ordinary Share purchase warrant

("Warrant").

 
    -- Each Warrant will be transferable and entitle the holder to acquire 

one Ordinary Share (a "Warrant Share") for five years from the Closing

Date at a price of GBP0.06.

 
    -- Metal Tiger will pay a 6% commission on Units placed by Sprott. 
 
    -- On the Closing Date, or on the admission date of shares trading to 

AIM, the Company shall issue to Sprott the number of non-transferable

common share purchase warrants ("Finder Warrants") that equals 3.0% of

the Units placed by Sprott. Each Finder Warrant permits the purchase

of one Warrant Share for five years from the Closing Date at a price

of GBP0.03 per unit.

 
    -- The Offering jurisdictions for this Offering will be all of the 

provinces of Canada pursuant to available private placement

exemptions, such offshore jurisdictions as may be agreed to between

the Company and Sprott Private Wealth LP and in the United States on a

private placement basis only under Regulation D, Rule 144A or

Regulation S of the United States Securities Act of 1933, as amended,

or other available registration exemptions in the United States;

provided that no prospectus, registration statement or similar

document is required to be filed in such jurisdiction and the Company

does not become subject to continuous disclosure obligations in such

jurisdiction.

 
    -- The Offering is contingent upon the Closing Conditions being 

satisfactory results of corporate due diligence on Metal Tiger

including favourable legal opinions of counsel to Metal Tiger in

connection with corporate, securities and title matters (including a

title opinion in respect of Metal Tiger's material mineral properties

on which the proceeds of the Offering are planned to be expended). The

Offering will also be conditional upon regulatory approvals.

 
    -- Upon completion of due diligence; which the Directors of Metal Tiger 

believe should be approximately a two week process, Metal Tiger will

enter into an agency agreement with Sprott and Sprott's and Metal

Tiger's respective legal counsel will draft a suitable subscription

agreement for the placees that have taken book orders with Sprott.

Michael McNeilly, Chief Executive Officer of Metal Tiger plc commented: "We are extremely pleased to have attracted the attention of Sprott. Sprott Private Wealth LP and its affiliates, one of the leading North American natural resources investors, have recognised the exceptional quality of the T3 copper discovery in Metal Tiger's Joint Venture with MOD Resources, as well as the highly prospective exploration potential of our other JV exploration licences. With this capital raise, we will be in a strong position to advance the T3 exploration and feasibility study programme with MOD Resources during 2017, and I look forward to providing our shareholders with further updates on progress."

A further announcement will be made in due course.

For further information on the Company, visit: www.metaltigerplc.com:

 
Michael McNeilly(Chief                              Tel: [phone] 
Executive Officer) 
Keith Springall (Finance                            Tel: [phone] 
Director 
& Company Secretary) 
Sean Wyndham-Quin          Spark Advisory Partners  Tel: +44 (0) 
Neil Baldwin               Limited                  2033 683 555 
                           (Nominated Adviser) 
                                                    www.sparkadvisorypartners.com 
Nick Emerson               SI Capital               Tel: [phone] 
Andy Thacker               (Joint Broker) 
Andrew Monk                VSA Capital Limited      Tel: [phone] 
Andrew Raca                (Joint Broker) 
Gordon Poole               Camarco                  Tel: [phone] 
James Crothers             (Financial PR) 
 
 

Notes to Editors:

Metal Tiger plc is listed on the London Stock Exchange AIM Market ("AIM") with the trading code MTR and invests in high potential mineral projects with a precious and strategic metals focus.

The Company's target is to deliver a very high return for shareholders by investing in significantly undervalued and/or high potential opportunities in the mineral exploration and development sector timed to coincide, where possible, with a cyclical recovery in the exploration and mining markets. The Company's key strategic objective is to ensure the distribution to shareholders of major returns achieved from disposals.

Metal Tiger's Metal Projects Division is focused on the development of its key project interests in Botswana, Spain and Thailand. In Botswana Metal Tiger has a growing interest in the large and highly prospective Kalahari copper/silver belt. In Spain Metal Tiger the Company has tungsten and gold interests in the highly mineralised Extremadura region. In Thailand Metal Tiger has expanding interests over licences, applications and critical historical data covering antimony, copper, gold, silver, lead and zinc opportunities.

The Company has access to a diverse pipeline of new opportunities focused on the natural resource sector including physical resource projects, new natural resource centred technologies and resource sector related fintech opportunities. Pipeline projects deemed commercially viable may be undertaken by Metal Tiger or by an AIM or NEX Exchange (formerly ISDX) partner with whom the Company is engaged.

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(END) Dow Jones Newswires

March 28, 2017 09:05 ET (13:05 GMT)