Aim-listed Metal Tiger plans to invest a further $1.5-million in Botswana-based Kalahari Metals (KML), which will increase its stake in the company to 62.2%.
Additionally, Metal Tiger has been conditionally granted a 2% net smelter royalty over all of KML’s wholly-owned licences, which currently total seven licences covering 6 650 km2.
The royalty will fall away should Metal Tiger invest a further amount that is lower than the investment, subject to a cap of $500 000.
Effectively, any further investment by Metal Tiger up to $500 000 must be at the same valuation as the investment.
KML will use Metal Tiger’s latest equity investment to fund exploration drilling at the Kitlyana East, Okavango Copper and Kitlyana West projects, which are located in the Botswana portion of the Kalahari Copperbelt.
KML will start soil sampling programmes in March, followed by targeted drilling thereafter.