Metal Tiger PLC (LON:MTR) said its part-owned associate Cobre Limited has executed an agreement to acquire 51% of Kalahari Metals Limited (KML).
The company noted that the terms of the share purchase agreement that has now been executed are generally consistent with the previously announced binding ‘heads of agreement’.
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“We are very pleased that the parties have entered into the SPA, as the board believes that completion of the transaction will facilitate the acceleration of KML’s planned exploration programme in one of the most exciting copper jurisdictions in the world, whilst providing an additional funding partner alongside Metal Tiger,” said Michael McNeilly, the investment firm’s chief executive.
“Furthermore, by diversifying our interest in KML via Cobre, we believe we have an additional avenue for liquidity on exploration success in the future. We look forward to further operational progress from KML in the near future, as our interests in the Kalahari Copper Belt continue to develop,” he added.
In its statement, Metal Tiger noted that it is among the vendors of KML shares to Cobre. It added that it currently owns a 62.17% equity interest in KML and holds 18.79% of Cobre.
Upon completion, it will own 20.72% of Cobre and 49% direct interest in KML which will equate to an overall economic interest in KML of 59.57%.
