Michael McNeilly, Chief Executive Officer of Metal Tiger, commented: We are deeply disappointed with the performance of Thor and have maintained our pro-rata holding in order to protect our investment.
We see Thor management (excluding Mark Potter who was only recently appointed) as having failed to deliver on their targets and believe that it is essential that cost-cutting measures are taken urgently in order to reduce Thor’s ongoing administrative costs. We do believe there is investment value that can be realised from Thor and agree that drilling at Bonya could improve the viability of Molyhill and is therefore important. We also believe that management needs to actively start considering new strategic assets to help drive shareholder value and improve market sentiment.
Metal Tiger plc (AIM:MTR), the London Stock Exchange AIM listed investor in strategic natural resource opportunities, announces that it has subscribed for 22,500,000 new ordinary shares in the capital of Thor Mining plc (AIM/ASX: THR) (“Thor”), for a consideration of £45,000, in the placing announced by Thor today (the “Placing”).
Thor has placed, in aggregate, 255,000,000 new ordinary shares (the “Placing Shares”), raising £510,000, at a price of 0.2p. 141,666,667 of the Placing Shares are conditional upon shareholder approval being received at a general meeting of Thor shareholders (the “Conditional Placing Shares”) (the “Conditional Placing”). Metal Tiger will subscribe for 10,515,464 Placing Shares in the unconditional placing (the “Tranche A Shares”) and the remaining 11,984,536 in the Conditional Placing.
Metal Tiger’s investment is approximately pro-rata to its existing shareholding in Thor and, following admission of the Tranche A shares, Metal Tiger will be interested in 84,565,464 Thor shares, representing approximately 9.04% of Thor’s enlarged issued share capital prior to completion of the Conditional Placing. Assuming the Conditional Placing completes, Metal Tiger will then hold 96,550,000 Thor shares, representing approximately 8.97% of Thor’s then enlarged issued share capital.
As set out in Thor’s announcement, it intends to utilise the net proceeds from the Placing to fund the Molyhill and Bonya tungsten projects, as well as the In-Situ Copper Recover project in which Thor holds an interest through its 25% stake in EnviroCopper Ltd.
Thor is an AIM and ASX listed exploration and development natural resources company, with interests in tungsten, molybdenum and copper projects in Australia and the USA. For the year ended 30 June 2019, Thor reported net assets of £12.48 million and a net loss of £0.74 million.
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