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Metal Tiger says acquisition of MOD Resources by Sandfire an “important” step

Metal Tiger holds 19.9% in MOD and will retain 3.5% in Sandfire following the transaction

Metal Tiger Plc -
MOD is an Australian-listed copper exploration and development company

Metal Tiger Plc (LON:MTR) said the acquisition of 100% shares in MOD Resources Ltd (LON:MOD) by Sandfire Resources NL (ASX:SFR) is an “important point” for the company.

MOD, in which Metal Tiger holds a 19.9% interest, shareholders on Tuesday approved the £91mln (AU$167mln) transaction, which still needs to go through the Supreme Court of Western Australia and further independent expert analysis, expected to be completed at the end of this month.

READ: Metal Tiger climbs as net asset value rises above share price

Metal Tiger’s chief executive Michael McNeilly said the sale is a foundation for future projects.

The AIM-listed investment company holds its equity interest in MOD after converting its stake in a joint venture directly into shares.

Metal Tiger, which has only invested £7.7mln in the joint venture over the years, will take its consideration in Sandfire shares and will end up holding around 3.5% in the ASX-listed miner for a combined total value in interests and assets of £23.2mln.

“The company is considering future investments and believes that investing in itself, via a share buyback, could be the best use of capital for the company,” said McNeilly.

“Eliminating discount to the net asset value of the business is a key focus of the board and we look forward to updating the market on this workflow and the closing of the deal in due course.”

Shares were up 2.67% to 1.46p in the early afternoon.

Quick facts: Metal Tiger PLC

Price: 2.25 GBX

AIM:MTR
Market: AIM
Market Cap: £34.25 m
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