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Completion of Investment in Sandfire Resources Limited

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LONDON, October 05, 2021--(BUSINESS WIRE)--

Metal Tiger plc

("Metal Tiger" or the "Company")

Completion of Investment in Sandfire Resources Limited

Metal Tiger plc (AIM: MTR, ASX: MTR), the AIM and ASX listed investor in natural resource opportunities, is pleased to announce that, further to the announcement on 27 September 2021, it has completed its entitlement rights investment in Sandfire Resources Limited ("Sandfire"). Metal Tiger has subscribed for and received 3,300,690 new fully paid ordinary Sandfire Shares ("Sandfire Shares") for a total cost of A$17,823,726.

Metal Tiger has financed this partially via the sale of 1,051,990 Sandfire Shares at an average price of A$5.22 per Sandfire Share, existing cash and by entering into a 12-month, A$9,000,000 margin lending facility agreement with a nominee of SC Lowy Primary Investments Ltd, which is secured against 4,714,286 Sandfire Shares held under a tripartite sponsorship deed with an Australian broker (the "Margin Lending Facility").

Summary of key terms of Margin Lending Facility:

  • 10% interest rate per annum (rising to 15% in the event of a default) from 4 October 2021, payable semi-annually (i.e. at 6 and 12 months thereafter).

  • Ability to extend for a further year, for a small fee.

  • Provides Metal Tiger with the ability to free up collateral under the Margin Lending Facility in the event that coverage exceeds 3.5 times the then outstanding loan amount plus accrued interest.

  • Metal Tiger has flexibility to free up liquidity by selling the Sandfire Shares that are security for the Margin Lending Facility, over a period of 5 trading days, with an aggregate value of not less than A$1,000,000 at the time the trade instructions are given, and provided the coverage exceeds the minimum-security cover maintenance levels on the outstanding loan amount plus accrued interest.

  • Metal Tiger can apply the proceeds of any sale to either:

    • Pay and repay all amounts payable under the Margin Lending Facility in full; or

    • As a prepayment to the amount outstanding under the Margin Lending Facility, to the extent that following such prepayment, the collateral value is at least the multiple of the loan amount outstanding plus accrued interest that it was before the sale instructions were given; and

    • Any surplus after such application shall be released to Metal Tiger.

  • Establishment fee of A$300,000 and arranger fee of A$50,000.

  • The agreement is subject to security cover maintenance levels and margin levels that are deemed commercially acceptable and standard for a transaction of this nature.

  • Metal Tiger maintains rights over all ordinary course of business dividends received from Sandfire.

Following completion of this investment Metal Tiger is currently interested in 8,462,057 Sandfire Shares representing approximately 2.4% of Sandfire’s issued share capital (post institutional raise). Of this holding, 2,842,667 Sandfire Shares are subject to an equity derivative financing arrangement with a global investment bank.

Michael McNeilly, Chief Executive Office of Metal Tiger, commented:

"The Margin Lending Facility allows Metal Tiger to maintain leverage to any potential upside in Sandfire over an extended period, with what the Board considers to be an appropriate level of risk, thanks to strong liquidity rights over collateralised shares. I would like to extend my gratitude to Adrian Bock, Chief Financial Officer of Metal Tiger, without whom securing the Margin Lending Facility would not have been possible. To conclude such a financing arrangement in such a short timeframe is a significant achievement."

This announcement contains inside information as defined in Article 7 of the EU Market Abuse Regulation No 596/2014 and has been announced in accordance with the Company's obligations under Article 17 of that Regulation.

For further information on the Company, visit: www.metaltigerplc.com

Enquiries:

Michael McNeilly

(Chief Executive Officer)

Tel: +44 (0)20 3287 5349

Mark Potter

(Chief Investment Officer)

James Dance

James Harris

Robert Collins

Strand Hanson Limited (Nominated Adviser)

Tel +44 (0)20 7409 3494

Paul Shackleton

Steve Douglas

Arden Partners plc (Broker)

Tel: +44 (0)20 7614 5900

Gordon Poole

James Crothers

Rebecca Waterworth

Camarco (Financial PR)

Tel: +44 (0)20 3757 4980

Notes to Editors:

Metal Tiger PLC is admitted to the AIM market of the London Stock Exchange AIM Market ("AIM") and the ASX Market of the Australian Securities Exchange Market ("ASX") with the trading code MTR and invests in high potential mineral projects with a base, precious and strategic metals focus.

The Company's target is to deliver a high return for shareholders by investing in significantly undervalued and/or high potential opportunities in the mineral exploration and development sector. Metal Tiger has two investment divisions: Equity Investments and Project Investments.

Equity Investments invests in undervalued natural resource companies. The majority of its investments are listed on AIM, the TSX and the ASX, which includes its interest in Sandfire Resources Limited (ASX: SFR). The Company also considers selective opportunities to invest in private natural resource companies, typically where there is an identifiable path to IPO. Through the trading of equities and warrants, Metal Tiger seeks to generate cash for investment for the Project Investments division.

Project Investments is focused on the development of its key project interests in Botswana, where Metal Tiger has a growing interest in the large and highly prospective Kalahari copper/silver belt through its interest in Kalahari Metals Limited.

The Company actively assesses new investment opportunities on an on-going basis and has access to a diverse pipeline of new opportunities in the natural resources and mining sectors. For pipeline opportunities deemed sufficiently attractive, Metal Tiger may invest in the project or entity by buying publicly listed shares, by financing privately and/or by entering into a joint venture.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211005005509/en/

Contacts

Metal Tiger plc

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