Metal Tiger (LON:MTR) confirmed it has completed its acquisition of a 50% stake in a Spanish tungsten project.
With a €500,000 investment the company has taken a 50% interest in Logrosán Minerals Ltd, the ultimate holdings company for the Logrosán mineral project where tungsten mineralisation was identified in a 2015 drill programme.
Partners in the Logrosán are currently reviewing the best route to further increasing value in the project, Metal Tiger said.
Additionally, Metal Tiger also highlighted that ‘due diligence’ drilling has been completed at the Maria project, where the focus is primarily on gold, and samples have now been sent for laboratory analysis.
The Maria agreement has been extended until March 31, to allow Metal Tiger more time to decide whether it wants to bring the project into the joint venture in Spain alongside the Logrosán project.
Various other opportunities are also under review, the company added.
Paul Johnson, Metal Tiger chief executive, said: “We see an opportunity to build a diversified Spanish investment group that could justify its own listing, in due course.”
He added: The progress achieved to date in Spain is highly encouraging and we are looking to build further on our success to date.
“We have conducted due diligence drilling at Maria Project in conjunction with our Logrosán partners MEN Finland and if the results are sufficiently attractive we may look to expand our joint venture agreement to include Maria.”
In a separate stock market statement on Wednesday morning, quoted natural resources investor Paternoster Resources (LON:PRS) announced it had sold 6mln Metal Tiger shares at an average price of 2.775p, for a total of £ 166,500 before expenses.
Paternoster highlighted it made a three-time return on its investment, and it continues to hold 21mln Metal Tiger shares which equate to 4.7% of the company.
Nicholas Lee, Paternoster chairman, said: "Metal Tiger has been making excellent progress and we are very pleased that this is now being recognized in the company's share price performance.
“We continue to be supportive of the company and its management team.
“However, notwithstanding this, it is only prudent for an investment company such as Paternoster to realise an element of the substantial gain that it has made from this investment.”