Metal Tiger (ASX:MTR) - CEO, Michael McNeilly
CEO, Michael McNeilly
Source: Metal Tiger
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  • Metal Tiger (MTR) is further investing in Sandfire Resources (SFR) via its recently closed institutional entitlement offer and placement
  • MTR opted to take up its entitlement rights in respect of more than 3.3 million new Sandfire shares for $17.8 million, with settlement to occur on October 4
  • The company’s board believes Metal Tiger has adequate cash and short-term realisable assets to meet its commitment
  • Metal Tiger shares closed flat at 48 cents, while Sandfire Resources shares closed down 0.65 per cent at $5.38

Metal Tiger (MTR) has further invested in Sandfire Resources (SFR) via its recently closed institutional entitlement offer and placement

MTR has opted to take up its entitlement rights in respect of more than 3.3 million new Sandfire shares for around $17.8 million, with settlement scheduled to occur on October 4.

The company is exploring several options to finance the investment, which it said might include a new margin loan facility or the existing equity derivative financing arrangement with a global investment bank.

Given its current cash resources and existing liquid equity portfolio, including 3.3 million unencumbered SFR shares, Metal Tiger said its board believed the company had adequate cash and short-term realisable assets to meet the commitment.

At present, MTR is interested in roughly 6.1 million Sandfire shares, representing around 3.4 per cent of SFR’s issued share capital.

Of this holding, 2.8 million SFR shares are subject to an equity derivative financing arrangement with a global investment bank.

Metal Tiger shares closed flat at 48 cents, while Sandfire Resources shares closed down 0.65 per cent at $5.38 on September 28.

MTR by the numbers
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