Metal Tiger plc (LON:MTR), the London Stock Exchange AIM listed investor in strategic natural resource opportunities, today announced a further US$1.1m equity investment into Botswana focused explorer, Kalahari Metals Limited, in which Metal Tiger currently owns 50% of the issued share capital. The investment will be satisfied from existing cash resources.
The additional US$1.1m investment will provide full funding for KML to complete its planned first round drilling at both the Ngami Copper Project and the Okavango Copper Project, as announced on 23 May 2019. The cutting of access tracks for the 2,100m diamond drill programme started, on schedule, on 27 May 2019 with mobilisation of drill rigs planned in the next week.
Further to this investment, Metal Tiger will be issued with further shares in KML such that its interest will increase to 59.81% of KML however, this will reduce to 53.17% upon completion of KML’s purchase of Kitlanya Limited (“Kitlanya”), as announced on 10 April 2019. The acquisition of Kitlanya by KML is conditional on change of control consent being obtained in Botswana. Notwithstanding Metal Tiger’s majority shareholding in KML following this investment, KML does not fall to be treated as a subsidiary of Metal Tiger as an agreement between the shareholders of KML precludes Metal Tiger from exercising control.
Michael McNeilly, Chief Executive Officer of Metal Tiger, commented:
“We are delighted that KML is now fully funded to commence the first round of drilling at the Ngami and Okavango Copper Projects and we look forward to initial drill results. This additional funding will also allow KML to plan further work programs over its licence holdings and we will make further updates in due course. The Kalahari Copper Belt is highly prospective and we are confident that continued exploration work in the region will potentially result in new, exciting copper discoveries.”