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RNS Number : 1383C

Metal Tiger PLC

14 January 2015

METAL TIGER PLC

14 January 2015

Metal Tiger plc

("Metal Tiger" or the "Company")

Uranium JV proceeding

Issue & Exercise of Kibo Warrants

On 21 November 2014, Metal Tiger Plc (LON: MTR), the AIM listed natural resources company, announced that it had entered into a Memorandum of Understanding ("MOU") with Kibo Mining Plc ("Kibo") with a view to a 50/50 Joint Venture ("JV") on Kibo's uranium-prospective tenements in Tanzania ("Pinewood Portfolio").

Metal Tiger is pleased to announce it is satisfied with the results of its due diligence of the Pinewood Portfolio and will now proceed to finalise the JV agreement for uranium exploration with Kibo. Under the MOU, by confirming due diligence is complete and its commitment to proceed, Metal Tiger is to be issued with 10 million warrants for 10 million new ordinary shares in Kibo, with an exercise price of 3p each and a term of 3 years from the date of issue.

Metal Tiger has also entered into exclusive discussions with Kibo to agree the terms of a Joint Venture on Kibo's gold-prospective Morogoro South project.

Metal Tiger's CEO, Cameron Parry, commented: "Metal Tiger is pleased to progress its commercial relationship with Kibo Mining Plc by proceeding with the uranium Joint Venture, strengthening the Company's equity position in Kibo, and entering into exclusive discussions in relation to a gold exploration JV.

Metal Tiger takes a medium-term view with regard to its material investments and seeks out opportunities with the potential to generate a multiple on invested capital. Although recently going below a notifiable shareholding in Kibo, as announced to the market on 8 January 2015, Metal Tiger has maintained a substantial holding of Kibo shares. Reflecting our view that Kibo is still significantly undervalued and has the potential for transformational commercial milestones, Metal Tiger will be immediately exercising its 10 million warrants for a total payment to Kibo of GBP300,000 from Metal Tiger's existing cash resources."

Uranium Prospective Joint Venture Areas - Pinewood Portfolio

A wholly owned subsidiary of Kibo Uranium Limited, itself a wholly owned subsidiary of Kibo Mining Plc, 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

Following completion of due diligence, the parties shall now proceed to enter into a JV agreement on the following terms as outlined in the MOU:

-- Metal Tiger is to acquire 50% of Kibo Uranium Limited ("KB Uranium"), a 100% wholly owned subsidiary of Kibo Mining plc, that owns the Pinewood Portfolio for a consideration of GBP1.

-- Metal Tiger is to meet 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)207 099 
  (CEO)                                         0738 
 Paul Johnson                                  Tel: +44 (0)7766 465 
  (Non-Executive                                617 
  Director) 
 Sean Wyndham-Quin   Spark Advisory Partners   Tel: +44 (0) 2033 683 
  Neil Baldwin        Limited                   555 
                      (Nominated Adviser) 
 
 Nick Emerson        SI Capital Limited        Tel: +44 (0) 1483 413 
  Andy Thacker        (Sole Broker)             500

This information is provided by RNS

The company news service from the London Stock Exchange

END

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