Metal Tiger PLC Uranium Joint Venture Commenced (9048F)
February 26 2015 - 4:00AM
UK Regulatory
TIDMMTR TIDMKIBO
RNS Number : 9048F
Metal Tiger PLC
26 February 2015
METAL TIGER PLC
26 February 2015
Metal Tiger plc
("Metal Tiger" or the "Company")
Uranium Joint Venture Commenced
On 21 November 2014, AIM listed natural resources investing
company Metal Tiger Plc (LON: MTR) announced that it had entered
into a Memorandum of Understanding ("MOU") with Kibo Mining Plc
("Kibo") regarding a 50/50 Joint Venture ("JV") on Kibo's
uranium-prospective tenements in Tanzania ("Pinewood Portfolio")
wholly owned by Kibo's subsidiary company, Kibo Uranium Ltd ("KB
Uranium").
Highlights:
-- Joint Venture Activities have commenced and first funds paid
-- Metal Tiger holds 50% of the Pinewood Portfolio
-- Portfolio consists of 43 licences, offers, applications and
tenders with a combined surface area of approximately 9,033 square
kilometre in Tanzania
Metal Tiger is pleased to announce that it has now commenced
activities under the JV with Kibo. Metal Tiger has transferred the
first tranche of funds to cater for the ongoing licence fees and
maintenance costs and Metal Tiger has been issued with new ordinary
shares in KB Uranium so that the Company now holds 50% of KB
Uranium representing Metal Tiger's stake in the 50/50 joint venture
of the Pinewood Porfolio.
Metal Tiger's CEO, Cameron Parry, commented: "Metal Tiger is
pleased to report that its Uranium Joint Venture with Kibo Mining
has now commenced. The Pinewood Portfolio provides an exciting
opportunity for the Company's direct project investment division
and we are pleased to be extending our working relationship with
Kibo on an ongoing basis. Costs to maintain the licences in good
standing are being serviced from Metal Tiger's existing cash
resources.
Further to the Uranium JV, Metal Tiger will be reporting to the
market shortly with progress regarding the anticipated JV of Kibo's
Morogoro gold project."
Uranium Prospective Joint Venture Areas - Pinewood Portfolio
Kibo Uranium Limited, now a 50% owned subsidiary of Kibo Mining
Plc, and 50% owned subsidiary of Metal Tiger, owns a portfolio of
Uranium prospective assets licences for exploration in Tanzania
(collectively the "Pinewood Portfolio").
The Pinewood Portfolio of exploration licences is located in the
southern western corner of Tanzania, between the regional capitals
of Iranga, Mbeya and Songea. The portfolio consists of 43 licences,
offers, applications and tenders with a combined surface area of
approximately 9,033 square kilometres.
Key Terms of the Uranium Project Joint Venture
The parties have commenced under their JV agreement, operating
under their MOU on the following terms:
-- Kibo Uranium Limited ("KB Uranium"), 50% owned by Kibo Mining
Plc and 50% owned by Metal Tiger Plc, owns the Pinewood
Portfolio.
-- Metal Tiger has commenced meeting the expenses in relation to
the licence renewal fees and other maintenance costs of the
Pinewood Portfolio for a minimum of 1 year (estimated to be
approximately $100,000) and up to a maximum of 3 years.
-- Metal Tiger is to expend the first US$800,000 under the JV in
expenses and exploration relating to the Pinewood Portfolio, at
which point costs moving forward are shared 50/50 between the
parties.
-- At any time following the first anniversary of the JV, on not
less than 90 days notice to Kibo, Metal Tiger may elect to cease
sole funding of the JV expenditure.
-- Should Metal Tiger elect to not continue with the JV after
the minimum term of one year, or fail to expend US$100,000 by the
first anniversary of the JV, or should Metal Tiger fail to expend
the full expenditure by the third anniversary of the JV then:
o if less than US$300,000 of the agreed expenditure, the 50%
interest in the JV owned by Metal Tiger shall revert back to KB
Uranium subject to them exercising a claw-back option;
o if greater than $300,000 of agreed expenditure, KB Uranium
shall have the right to exercise the claw-back option in respect of
Metal Tiger's interest in KB Uranium however Metal Tiger shall
retain a 10% free carry in the Pinewood Portfolio.
For further information on the Company, visit:
www.metaltigerplc.com:
Cameron Parry Tel: +44 (0)207
(CEO) 099 0738
Paul Johnson Tel: +44 (0)7766
(Executive 465 617
Director)
Sean Wyndham-Quin Spark Advisory Partners Tel: +44 (0) 2033
Neil Baldwin Limited 683 555
(Nominated Adviser)
Nick Emerson SI Capital Limited Tel: +44 (0) 1483
Andy Thacker (Sole Broker) 413 500
This information is provided by RNS
The company news service from the London Stock Exchange
END
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