Metal Tiger’s (LON:MTR) expansion has taken another forward step as it secured an option to take control of its Thailand venture.
For a total of US$50,000, it can acquire the remainder of the venture that it doesn’t already own, though the plan is to then assign 10% to a local Thai partner.
This would mean Metal Tiger’s interest in the venture would increase to 90% from 10%.
The company said it is also engaged in advanced negotiations to acquire additional Thai precious and base metal interests.
“Shareholders are well aware of Metal Tiger's strategic ambition to build a large and diversified natural resource business, and the expansion of its Thai interests is an important part of that strategy,” said chief executive Cameron Parry.
Parry added that the Metal Tiger board will this month visit Thailand to progress the transaction, and seek to expand the company’s footprint.
He also said that the company intends to follow up its “tremendous success” in Spain, where it has a joint venture that’s made two potentially substantial tungsten discoveries.
“By further expanding our interests on the ground in both Thailand and Spain we will be creating critical mass in our Direct Projects division in both countries and that makes sense from a strategic business perspective,” Parry said.
Metal Tiger is unable to disclose any specific details relating to the potential new opportunities whilst the transactions are still being finalised.
A joint venture agreement, last November, set out terms for Metal Tiger to earn up to 75% of gold and antimony project in Thailand. That agreement would see the AIM quoted company fund up to US$300,000.
The company would’ve had US$150,000 left to fund, under the prior agreement, though this option will allow it to take full ownership for a total of US$50,000 by the end of this month.