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Metal Tiger taps into Gabon nickel-copper exploration with Armada Exploration investment

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Metal Tiger PLC (LON:MTR) said it has signed an investment agreement with Armada Exploration Ltd, a Mauritian holding company owning 100% of Armada Exploration.

The investor said Armada holds two exploration licences, prospective for magmatic nickel-copper sulphide, in Gabon, covering a total area of nearly 3,000 square kilometres.

READ: Metal Tiger encouraged by progress at Kitlanya East copper-silver project

It added that the licence holding is considered to present a frontier district-scale exploration opportunity.

The location along the Congo Craton margin with a complex regional-scale fault network has permitted extensive volumes of mafic melt to intrude into sulphide-bearing country rocks assisting the potential formation of magmatic nickel-copper sulphide deposits.

Copper and nickel sulphide occurrences have been mapped at surface at three top ranked targets.

The 20km-long Libonga-Matchiti Trend is drill ready and Armada is planning a drilling programme of 3,000 metres in the second half of 2021.

The AIM-listed firm has subscribed for 5mln new ordinary shares at a price of US$0.15 in Armada for a total consideration of US$750,000 via a promissory note with US$350,000 to be invested up-front and with the $400,000 to be paid in monthly instalments of US$80,000 over the next five months.

In the event of a public listing Metal Tiger will need to settle any outstanding amounts under the promissory note in full at the time of the public listing.

This is because Armada is targeting an IPO for 2021 coinciding with drill rig mobilisation.

Following completion, Metal Tiger will own 18.5% of the issued ordinary share capital of Armada and will be given the right to appoint a director to the board of Armada, though it noted that it has not yet opted to take up this right.

“This frontier is significantly under-explored, which makes it so exciting, and we welcome the longer-term proposal for Armada to undertake an IPO,” said Metal Tiger’s chief executive Michael McNeilly in a release.

“Armada has completed significant work to create a compelling geological model that has delineated multiple drill-ready projects. Should the initial work programme prove successful it has the potential to create significant value uplift across all of the untested targets and increase the overall attractiveness of the district.”

“Given its experienced leadership team, who have a successful track record of involvement in major discoveries and operational experience in Central and Southern Africa, we look forward to the results of Armada’s upcoming operational phase.”

Shares rose 3% to 21.37p on Friday morning.

–Adds shares–

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