Metal Tiger has announced that it is to sell its 30% interest in the T3 Copper Project in Botswana for shares in its JV partner, the ASX-listed MOD Resources. This will allow it to maintain its exposure to, whilst not having to contribute further cash calls for, the project, and also to maintain its upside to the large prospective exploration portfolio in Botswana, in which it will continue to own a 30% JV interest. Together with its current holding in MOD, the transaction will increase its diluted interest in MOD to the equivalent of 24.8%.
Maintaining Buy rating and target price of 3.6p. We have updated our valuation to account for the recent resource update at the T3 Copper Project and the proposed transaction — We note that drilling has commenced on the JV exploration properties in which Metal Tiger maintains a 30% JV interest, with added exposure through its equity investment in MOD Resources. We are optimistic regarding the potential for additional discoveries on these properties and note the first results have been encouraging, reporting the visual presence of copper mineralisation in the first two holes drilled at the A4 Target. Assays are awaited.
RFC Ambrian acts as Nomad and Broker to this company.