Metal Tiger plc UK regulatory announcement: Sandfire update Acquisition of MATSA mining complex


LONDON–(COMMERCIAL THREAD) –

September 23, 2021

Metal Tiger plc

(“Metal Tiger” or the “Company”)

Sandfire update Acquisition of the MATSA mining complex

Metal Tiger plc (AIM: MTR, ASX: MTR), the AIM and ASX listed investor in natural resources opportunities, is pleased to provide an update on its investment in Sandfire Resources Limited (“Sandfire “). Sandfire today announced the acquisition of the MATSA mining complex in Spain and fundraising of A $ 1,248 million. Metal Tiger is currently interested in 6,143,357 Sandfire shares representing approximately 3.4% of the issued share capital of Sandfire. As announced on December 8, 2020, 2,842,667 of the Sandfire shares held by the Company are subject to an equity derivative financing agreement with a global investment bank.

Metal Tiger will notify its shareholders in due course of its intentions with respect to its rights under the share offering and is currently considering several options.

Strong points:

  • Sandfire has entered into a binding sale and purchase agreement with Trafigura and Mubadala Investment Company (the “sellers”) to acquire 100% of Minas de Aguas Teñidas (“MATSA”) for a total amount of US $ 1,865 million ( AU $ 2,572 million).

  • The agreed transaction provides Sandfire with the MATSA mining complex in Spain, which includes three underground mining operations feeding a world-class 4.7 Mtpa central processing facility with state-of-the-art infrastructure producing 100-120 ktpa CuEq per year.

  • Provides Sandfire with long life, low cost, first quartile exposure, with approximately 12 years of resource based mine life and significant potential for life extension and exploration, and a successful history of resource and reserve replacement and growth.

  • The transaction immediately transforms Sandfire into one of Australia’s largest copper-focused producers with pro forma FY22 production of 170-194kt CuEq at a MATSA C1 cost of $ 0.4-0.5 / lb and a DeGrussa C1 cost. from 1.0-1.1 USD / lb.

  • The inclusion of US $ 1,865 million implies an acquisition multiple of 4.8 times MATSA’s EBITDA for fiscal 21 of US $ 387 million, which compares favorably to the trading multiple of Median EBITDA of its global peers.

  • Sandfire to fund the transaction through a combination of a US $ 650 million (AU $ 897 million) syndicated and guaranteed debt facility guaranteed by MATSA, with a fully subscribed fund raising of $ 1,248 million. Australian dollars (A $ 905 million), A $ 297 million (US $ 215 million) from existing cash reserves and the drawdown of a corporate loan facility of A $ 200 million ( 145 million US dollars).

  • AustralianSuper, Australia’s largest superannuation fund, has pledged to underwrite A $ 120 million of the offering and further underwrite up to A $ 150 million of the retail right offering .

  • Sandfire intends to keep MATSA’s highly experienced management team in the country and complement Sandfire’s complementary skill set and capability, especially with VMS depots.

  • MATSA acquisition is expected to generate earnings and cash flow per Sandfire share in its first full year of ownership (FY23), transforming Sandfire’s growth trajectory and providing a core asset with an expected lifespan mine over 10 years old.

  • MATSA has significant regional upside potential in Spain’s very promising Iberian Pyrite Belt (one of the world’s largest concentrations of VMS copper-zinc mineralization) – providing a solid foundation for Sandfire’s future.

  • The transaction is expected to close in the March 2022 quarter, with key preconditions including approval of the Spanish foreign direct investment and the antitrust merger.

Below is a link to the Sandfire announcements:

Transformational acquisition of the MATSA mining complex:

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02425128-6A1051678?access_token=83ff96335c2d45a094df02a206a39ff4

Acquisition of the MATSA Mining Complex Presentation:

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02425130-6A1051681?access_token=83ff96335c2d45a094df02a206a39ff4

For more information about the Company, visit: www.metaltigerplc.com

Requests:

Michael mcneilly

(Chief Executive Officer)

Phone: +44 (0) 20 3287 5349

Marc Potter

(Director of Investments)

James dancing

James harris

Robert collins

Strand Hanson Limited (appointed advisor)

Phone +44 (0) 20 7409 3494

Paul shackleton

Steve douglas

Arden Partners plc (Broker)

Phone: +44 (0) 20 7614 5900

Gordon poole

James crother

Rebecca Waterworth

Camarco (Financial PR)

Phone: +44 (0) 20 3757 4980

Notes to Editors:

Metal Tiger PLC is listed on the AIM market of the London Stock Exchange AIM Market (“AIM”) and on the ASX market of the Australian Securities Exchange Market (“ASX”) with the trading code MTR and invests in mining projects at strong potential with a focus on base, precious and strategic metals.

The Company’s objective is to provide a high return to shareholders by investing in significantly undervalued and / or high potential opportunities in the mining exploration and development industry. Metal Tiger has two investment divisions: Equity Investments and Project Investments.

Equity investments invests in undervalued natural resource companies. The majority of its investments are listed on AIM, TSX and ASX, which includes its stake in Sandfire Resources Limited (ASX: SFR). The Company is also considering selective opportunities to invest in private natural resource companies, generally where there is an identifiable path to the IPO. Through the trading of stocks and warrants, Metal Tiger seeks to generate liquidity for the investment of the Project Investments division.

Project investments is focused on developing its key project interests in Botswana, where Metal Tiger has a growing interest in the vast and highly promising Kalahari Copper / Silver Belt through its stake in Kalahari Metals Limited.

The Company is actively evaluating new investment opportunities on an ongoing basis and has access to a diverse pipeline of new opportunities in the natural resources and mining sectors. For pipeline opportunities deemed sufficiently attractive, Metal Tiger may invest in the project or entity by purchasing publicly traded shares, privately financing and / or establishing a joint venture.

Category code: MSCU

Sequence number: 746715

Reception time (offset from UTC): 2020923T083444 + 0100

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