LONDON –(BUSINESS WIRE)– Metal Tiger plc, the London Stock Exchange AIM listed investor in strategic natural resource opportunities, announced that Kalahari Metals Limited (KML), in which Metal Tiger owns 50% of the issued share capital, has entered into a binding agreement with Resource Exploration and Development Limited (RED), to purchase 100% of Kitlanya Ltd (Kitlanya). Post completion of the acquisition, Metal Tiger’s interest in KML will be diluted to approximately 43.9%.
Kitlanya is a 100% subsidiary of RED and was previously subject to an Earn-in Agreement between the parties (as announced on 30 November 2018). The parties have now agreed to terminate the Earn-in Agreement and have executed a conditional Share Purchase Agreement on similar terms.
KML has completed US$100,000 of exploration works on the licences held by Kitlanya and will acquire 100% of Kitlanya for US$700,000, satisfied by the issue of shares representing approximately 13.4% of KML as enlarged by the acquisition. The transaction will value KML, post completion of the acquisition, at US$ 5.2 million.
The Kitlanya licences comprise five recently granted exploration licences and cover approximately 4,651km2 of well-located exploration tenure in the prospective Kalahari Copper Belt. The acquisition will increase KML’s direct land position in the Kalahari Copper Belt to approximately 8,594km2.
The acquisition is conditional upon approval of the change of control of Kitlanya being granted by the authorities in Botswana and receipt of an updated letter of good standing for the licences.
Metal Tiger intends to provide further funding to KML to support its drilling in Q2 2019 and further announcements will be made as and when appropriate.
Michael McNeilly, Chief Executive Officer of Metal Tiger, commented: “We are delighted that KML has reached an agreement to acquire Kitlanya, which will consolidate its highly prospective exploration interests in the Kalahari Copper Belt. We intend to demonstrate our continued support for KML and its activities in Botswana through the provision of further funding in due course.”
KML 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, and five exploration licences subject to a conditional Acquisition agreement with RED.
Under an investment agreement, announced on 6 June 2018, Metal Tiger owns 50% of KML, providing Metal Tiger with further exposure to a largely unexplored area, adjacent to significant recent discoveries in the highly prospective Kalahari Copper Belt.[the_ad id=”31605″]