Metal Tiger PLC’s (LON:MTR) said the approval of the first minerals management master plan by Thailand's National Minerals Management Committee (NMC) is a “significant step” in the planned flotation of its Thai joint venture.
The company in September had announced that it would delay the initial public offering (IPO) of its shares in the previously operational Song Toh and Boh Yai mines after investors called for it to be postponed to seek clarification on some aspects of the new Thai minerals act.
Metal Tiger had said it believed waiting for clarification of the first master plan would improve the valuation of the IPO, which is being delayed until the first quarter of 2018.
The master plan will now be presented to the Thai Cabinet for consideration, which is expected by the end of January.
If approved, the Thai joint venture’s mining licence applications over the two silver, lead and zinc mines will be designated as mineral deposit areas (MDAs) for mining.
“As shareholders and potential investors will note from the announcement on 18 September 2017, the Master Plan and MDA status, in particular, was one of the key reasons for delaying the planned IPO,” chief executive Michael McNeilly said in a Friday statement.
“Whilst Cabinet sign-off is still required, the fact that the NMC has approved the Master Plan represents a significant step in the right direction for Metal Tiger’s Thai interests.”
Metal Tiger has a 78% interest in the Song-Toh and Boh-Yai mines, which ceased operations in 2002 after 32 years due to low metal prices.