Metal Tiger PLC (AIM:MTR, OTC:MRTTF, ASX:MTR), the AIM and ASX listed investor in natural resources opportunities, said it has completed the sale of 1,300,000 shares in Sandfire Resources at approximately A$5.357 per share, raising gross proceeds of approximately A$6.929mln.
Metal Tiger said it has used part of the proceeds of the sale to take up its pre-emptive rights in the retail component of Sandfire’s entitlement offer for a total investment of A$2,034,824.50 for an additional 473,215 shares in Sandfire at a price of A$4.30 per share.
Additionally, A$3.894mln from the proceeds of the sale have been used to reduce the loan balance outstanding under the company's margin lending facility to approximately A$0.85mln.
The balance of approximately A$1mln from the proceeds of the sale will be used for working capital.
Following disposal of the 1,300,000 shares, Metal Tiger is interested in 5,706,953 Sandfire shares representing approximately 1.29% of Sandfire’s current issued share capital. Post completion of Sandfire’s entitlement offer, Metal Tiger will be interested in 6,180,168 Sandfire shares representing approximately 1.39% Sandfire’s enlarged issue share capital.
As previously announced, 2,842,667 of the Sandfire shares held by the company are subject to an equity derivative financing arrangement with a global investment bank, with 1,675,125 shares secured under this facility against a loan outstanding of approximately A$7.042mln falling due on 16 December 2022.