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Additional Information
Market: ASX TSX
Sector: General Mining
EPIC: TGS
Latest Price: 0.46  (-2.13% Descending)
52-week High: 0.63
52-week Low: 0.35
Market Cap: 308.71M
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Tiger Resources
www.tigerresources.com.au

Tiger Resources (ASX/TSX:TGS) is a copper/cobalt exploration company with excellent growth potential as it makes the transition from explorer to producer. Tiger has built up a highly-rated portfolio of properties, all strategically located on the world renowned Katanga Copperbelt in the Democratic Republic of the Congo (DRC).

 

Full Tiger Resources profile here
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Tiger Resources secures US$33.9 million equity and debt financing package

10th Nov 2009, 2:31 pm
Tiger Resources secures US$33.9 million equity and debt financing package

Shares in Perth-based exploration company Tiger Resources (ASX & TSX: TGS) have shot up 25% in Australian trading after the company entered into an agreement with Trafigura Beheer for a US$33.9 million combined equity and debt financing package.

News of the deal caused shares in Tiger to jump by A$0.04 to A$0.20

The funds will be used to complete Tiger’s payment obligations to acquire a 60% interest in the Kipoi Project, meet additional funding requirements for the Stage 1 development at Kipoi, fund the follow-up drilling programme at its Sase prospect and for working capital and general corporate purposes.

Tiger chairman Reg Gillard said the strategic involvement of Trafigura was not just a vote of confidence in Tiger, but also a vote of confidence by one of the world’s leading commodity traders in both the potential of the DRC and the future of the copper price.

"Management view the agreement as one that can bring substantial benefit to shareholders of the company," Mr Gillard said.

"Trafigura is also able to provide extensive technical support as well as general in country assistance."

The equity component is through a private placement not subject to shareholder approval but requires the approval of the Toronto Stock Exchange.

The debt component of the financing package will be subject to definitive agreements being entered into and shareholder approval.

The package from Trafigura comprises the placement of 50 million shares at an issue price of A$0.15 for proceeds of A$7,500,000, a loan note debt facility for US$12 million and a subordinated debt facility for US$15 million.

Tiger is hoping to bring the Stage 1 development into production by mid 2010.

Meanwhile, the company has also reached agreement for the acquisition of the outstanding 15% interest in Tiger Congo sprl from Groupe Orgaman for US$3 million in cash.

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