Metal Tiger delighted with Sandfire Resource’s decision to develop T3 in Botswana

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Metal Tiger PLC (LON:MTR) has welcomed the decision by Sandfire Resources Limited (ASX:SFR) to push ahead with development of the T3 Motheo copper project in Botswana.

Aussie-listed Sandfire has published a definitive feasibility study for T3 Motheo that indicates a post-tax net present value of  US$206mln.

AIM-listed Metal Tiger has a US$2mln capped net smelter royalty over the T3 Motheo project and also an uncapped royalty over 8,000 sq km of adjoining acreage.

Here, Sandfire also published a maiden resource for the A4 deposit of 6.5mln tonnes at 1.5% copper for 100,000t of contained metal plus 4.9mln oz of silver.

Michael McNeilly, Metal Tiger’s chief executive, said: “This is an important moment for Metal Tiger, which highlights not only the current value of our interests in the Kalahari Copper Belt, but also the potential for significant future value creation.

Sandfire is also moving quickly to be able to incorporate A4 into its mine plans, he said.

“This will likely have a significant impact on when we can first anticipate receiving revenue from our uncapped 2% net smelter royalty.

“Furthermore, the exceptional >10% Cu grades over substantial down-hole widths along with the presence in one hole of 2.9% Mo, are expected to pique the interest of geologists globally.

“In particular, we are excited by how the development of T3 will impact our royalty interest over much of the adjacent Sandfire exploration acreage, as well as our interest in Kalahari Metals, and, assuming the recently announced deal completes, our investment in Cobre Limited.”

Metal Tiger holds around 6.3mln Sandfire shares or 3.5% of its issued share capital, of which 2.6mln are currently subject to an equity derivative financing arrangement.

Shares in Metal Tiger jumped 9% to 27.5p.

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