AIM quoted natural resource investor Metal Tiger (LON:MTR) has told investors that its chairman has become its largest shareholder following a share subscription.
Chairman Terry Grammer is personally investing £240,000 into the company, buying 30mln new shares at a price of 0.8p each – which was the mid-market price at the time the transaction was agreed.
Grammer also receives share warrants for a further 30mln new shares, exercisable at 1.6p over an eighteen month period.
Metal Tiger said the capital injection would be used to accelerate its activities.
Chief executive Cameron Parry highlighted that in the current resource market climate the magnitude if Grammer’s investment “would be noted by investors who currently hold shares and those monitoring Metal Tiger.”
“Terry has a history of involvement with companies that have multiplied early investors capital many fold.
“His direct involvement in the identification of all three Metal Tiger strategic interests, followed by this substantial investment in the company, is something we trust will give investors justifiable confidence in the company's direction."
He added: “As a company over the last 18 months we have set our stall out in the resources sector in readiness for the inevitable recovery.
“We have been fortunate that through trading gains and financings we have been able to acquire a trio of strategic resource project interests in Botswana, Spain and Thailand, each of which have tremendous upside potential.”
Grammer’s investment will see him own 8% of the AIM quoted company’s shares.