Metal Tiger plc (LON: MTR), the London Stock Exchange AIM listed investor in strategic natural resource opportunities, has today provided an update further to its announcement of 20 August 2018 regarding its Kalahari Metals Limited joint venture in Botswana.
- Further to the announcement of 20 August 2018, KML has now completed due diligence and entered into an earn-in agreement with Resource Exploration and Development Ltd to acquire an interest in five recently granted exploration licences, with a total area of 4,661km2, in the highly prospective Kalahari Copper Belt
- Pursuant to the Agreement, KML
- will acquire up to 25% of Kitlanya Ltd , RED’s wholly owned subsidiary that holds the RED Licences for an immediate cash investment of US$100,000
- has the option to acquire the remaining 75% of Kitlanya by way of an issue of KML shares at a value of US$700,000
- the number of KML shares to be issued will be determined at the time of issue and will be dependent on, inter alia, the valuation of KML at that time
- The Agreement more than doubles KML’s exploration interests from 4,063km2 to 8,724km2
- The RED Licences form two contiguous groups
- Kitlanya East, consists of three licences located immediately south of MOD Resources Limited’s T3 Deposit and Cupric Canyon Capital’s Chalcocite Zone deposit
- Kitlanya West, consists of two licences located along strike of KML’s Ngwako Copper Project and abuts the Namibian border on the northern limb of the Kalahari copper belt
- Kitlanya East will target mineralised redox boundaries proximal to basin boundaries and basement horst blocks which are interpreted to extend through the project area. Soil cover is thin and a first phase soil sampling programme is scheduled to commence immediately
- Kitlanya West has the potential for copper related to structural domes interpreted from historical airborne electromagnetic (“AEM”) geophysics survey data. These domes will be similar targets to those providing exciting copper intersections in the MTR/MOD joint venture areas
- Regional AEM geophysics test lines are planned to be flown over the PL070-072/2017 Kitlanya East permits during the initial soil sampling programme in order to help identify drilling targets for 2019
Michael McNeilly, Chief Executive Officer of Metal Tiger plc, commented:
“We are pleased to announce the agreement to significantly increase KML’s exploration interests in Botswana.
The earn-in agreement between KML and RED substantially increases Metal Tiger’s exposure to highly prospective ground within the Kalahari Copper Belt, which across the separate KML and MOD joint ventures covers an area of around 16,000km2, an equivalent area to over three quarters the size of Wales.
With the regional soil sampling programme due to commence immediately over Kitlanya East, and airborne geophysics being planned, we look forward to keeping shareholders updated on KML’s progress. We commend our KML partners for securing this deal.”
Following the Agreement, KML now holds interests in 12 highly prospective exploration licences covering a total area of 8,724km2 in the Kalahari Copper Belt, consisting of two 100% owned exploration licences, five exploration licences subject to a binding earn-in agreement with Triprop Holdings (Pty) Limited (“Triprop”) and five exploration licences subject to the Agreement. Under an investment agreement, announced on 6 June 2018, MTR has the right to acquire up to 50% of KML, providing MTR with further exposure to largely unexplored area, adjacent to significant recent discoveries in the highly prospective Kalahari Copper Belt.
Thailand Permitting Process Update
Metal Tiger plc also announced today that, on 22 November 2018, the Thai Minister for Industry appointed the final six Mineral Committee members.
The Mineral Committee under the newly implemented Minerals Act B.E. 2560 (2017), is charged with: 1) advising the Minister of Industry on bidding procedures and the issuance of ministerial regulations and notifications; 2) approval of special prospecting licenses and mining leases and their renewals and transfers; 3) revocation of mining lease conditions for properties in certain mining categories; 4) resolution of complaints; and 5) providing assessments of the impact on health and the environment.
The mining lease and exploration licence permitting process in Thailand was suspended in August 2017 when the Minerals Act B.E. 2510 (1967) was officially replaced by the Act, pending completion of the 20-year minerals management strategy and the 5-year minerals management master plan (2017-2021), which were ratified by the Thai Cabinet in July 2018.
The Board of the Company views the finalisation of the Mineral Committee as the remaining major legislative hurdle to the resumption of the permitting process in Thailand. Accordingly, the Board believes that the formal process of progressing Kemco and Boh Yai’s mining licence applications and Metal Tiger Exploration’s special prospecting licence applications in Thailand can resume.
Michael McNeilly, Chief Executive Officer of Metal Tiger, commented:
“The 20-year mineral management strategy and the first 5-year mineral management master plan had been under consideration by the Government of Thailand for over a year. The appointment of the final six Mineral Committee members represents a major milestone and the removal of a major hurdle that has kept Metal Tiger’s mining projects in Thailand from progressing. We now look forward to restoring the application process for our Thai assets.”