Metal Tiger PLC (LON:MTR) said Southern Gold, in which it holds a 19.1% stake, has agreed on a share swap deal with Bluebird Merchant Ventures (BMV).
Southern Gold is to exchange its 50% joint venture interests in the Gubong and Kochang projects in exchange for up to 200mln shares in BMV at a deemed issue price of US$0.05 a share.
At current exchange rates, Southern Gold’s stake will be worth roughly A$13.2mln, which Southern Gold’s managing director, Simon Mitchell, pointedly noted is more than double the company’s enterprise value (market capitalisation adjusted for debt).