Metal Tiger PLC (LON:MTR) said it has subscribed for 952,354 shares in Geopacific Resources Limited (ASX:GPR) at a price of A$0.42 per share for a total investment of A$399,988 as part of the Australian firm’s A$140mln two tranche placement.
The AIM-listed natural resources investor said it subscribed for 122,185 shares in tranche one and 830,196 shares in tranche two of the fundraise, following which it will hold a 0.19% stake in Geopacific.
Geopacific is a gold-copper development firm focused on the 1.6mln ounce Woodlark gold project in Papua New Guinea. Metal Tiger said the firm is targeting first gold production for the end of the fourth quarter of 2022 and is also close to finalising a US$100mln project financing deal from investment manager Sprott.
The project has a post-tax net present value of A$347mln and an internal rate of return of 34% at a gold price of A$2,200 per ounce.
Shares in Metal Tiger rose 4.3% to 24.3p in mid-morning trading on Monday.