Metal Tiger PLC (AIM:MTR, OTC:MRTTF, ASX:MTR), the AIM and ASX listed investor in natural resources opportunities, said it has sold 200,000 Sandfire shares at an average price of A$6.105 per share raising gross proceeds of approximately A$1.221mln.
Of the net sale proceeds, A$337,000 will be applied to reducing the outstanding loan balance on the company's new A$15mln margin lending and drawdown facility with a sub-fund of SC Lowy SI II (SG) VCC, announced on 14 December 2022, with the balance of A$877,000 proceeds to be used for working capital and other investment opportunities.
Following the disposal, Metal Tiger holds 4,562,626 Sandfire shares within the facility against an outstanding loan balance of A$7.579mln, and Metal Tiger will be interested in 5,730,168 Sandfire shares, representing approximately 1.25% of Sandfire’s issued share capital.
Of the total, 1,167,542 Sandfire shares will be secured under the equity derivative financing arrangement with a global investment bank.
Metal Tiger's target is to deliver a high return for shareholders by investing in significantly undervalued and/or high-potential opportunities in the mineral exploration and development sector.
The majority of its investments are listed on AIM, the ASX and Canada's TSX. The company also considers selective opportunities to invest in private natural resource companies, typically where there is an identifiable path to IPO.