Two AIM Listed Stocks in Limelight - Metal Tiger PLC & Uru Metals Limited

Summary

• Metal Tiger PLC invested £202,000 in Sable Resources Limited and £165,000 in Canyon Resources Limited.
• It would receive a dividend payment of AUD 516,000 from Sandfire Resources.
• Uru Metals Limited plans to restart the exploration work at Zebediela project. The 12-hole drilling programme at the Zebediela project is expected to start in October 2020, and it would end in March 2021.
• Zebediela project has the potential to produce 500,000 tonnes of nickel using an open-pit mining method.

Metal Tiger PLC (LON:MTR) & Uru Metals Limited (LON:URU) are listed on the FTSE AIM All-Share index. Shares of MTR were up by around 0.1 percent, and shares of URU were down by close to 6.14 percent (as on 1 September 2020, before the market close at 10:15 AM GMT+1).

Metal Tiger PLC (LON:MTR) - Looking for a secondary listing on the Australian Stock Exchange (ASX)

Metal Tiger PLC is a UK based company that focuses on private equity and hybrid public investing in the mining sector. The Company categorizes the investment under Project investment and Equity investment. Metal Tiger has Project investment in Kalahari Metals Limited and Equity investment in Sandfire Resources Limited, Cobre Limited and Southern Gold. Metal Tiger is listed on the FTSE AIM All-Share index.

Investment in Canyon Resources Limited

On 1 September 2020, Metal Tiger announced that it had invested £165,000 in Canyon Resources to subscribe 3 million shares. Canyon Resources issued new shares to raise close to AUD 10 million at AUD 0.10 per share. Metal Tiger’s investment would represent 0.5 percent of the newly issued capital.

Investment in Sable Resources Limited

On 27 August 2020, Metal Tiger announced that it invested approximately £202,000 in Sable Resources Limited to subscribe close to 2.33 million shares. Metal Tiger would have equity ownership of 1.05 percent in the newly issued capital. Sable Resources raised about CAD 9.0 million through the issue of shares at CAD 0.15 per share. The new shares have warrants with an exercise price of CAD 0.20 and one warrant is issued for two new shares. Sable Resources is listed on the Toronto Stock Exchange, and it is engaged in the exploration of metals in Latin America. The Company owns Margarita & Vinata and El Escarpe project in Mexico, El Fierro project and Don Julio cluster in Argentina and Scorpius project in Peru. As on 31 March 2020, Sable Resources had net assets of CAD 7.85 million.

Update on Sandfire Resources

On 27 August 2020, Metal Tiger reported that Sandfire Resources announced the dividend of AUD 0.14 per share as Sandfire released its annual results. Tiger Metal owns 6,296,990 shares of Sandfire Resources that represent the equity of close to 3.5 percent of the total issued capital. Metal Tiger would receive close to AUD 516,000 as dividend from Sandfire Resources on 29 September 2020 that are not subject to umbrella facility. The remaining dividend of close to AUD 365,000 on Sandfire Resources shares is subject to umbrella facility.

Recent Developments

• On 24 August 2020, Metal Tiger announced that Southern Gold entered into an agreement with Ausino Drilling Services for support in mineral exploration in South Korea. Metal Tiger has an equity stake of 17.1 percent in Southern Gold.
• On 21 August 2020, the Company announced that it is also looking for a secondary listing on the Australian Stock Exchange (ASX). The admission on the ASX is expected in Q4 2020.
• On 20 August 2020, Metal Tiger reported Cobra Limited where it owns close to 18.8 percent stake assay results for the third drilling programme. The drilling was performed at Perrinvale high-grade VHMS project, and high-grade results were acknowledged.

Share Price Performance Analysis

1-Year Chart as on September-1-2020, before the market close (Source: EODHD/Others, Thomson Reuters)

Metal Tiger PLC's shares were trading at GBX 26.00 and were up by close to 0.1 percent against the previous closing price (as on 1 September 2020, before the market close at 10:15 AM GMT+1). MTR's 52-week High and Low were GBX 27.50 and GBX 7.00, respectively. Metal Tiger had a market capitalization of around £39.84 million.

Uru Metals Limited (LON:URU) - Plans to secure funding for the drilling programme at Zebediela project

Uru Metals Limited is based in the British Virgin Islands, and the Company is engaged in the development of the mineral projects. The Company has an interest in Zebediela Nickel Sulphide project in South Africa and Narke Oil Uranium project in Sweden. It is mainly engaged in trading of Nickel, Uranium, Gold and Oil. Uru Metals is listed on the FTSE AIM All-Share index.

Update on Zebediela Project as reported on 27 August 2020

The Company highlighted that it would soon restart the geological exploration work at the Zebediela project. The exploration work would target nickel-sulphide minerals. The Zebediela project is situated in the northern limb of the Bushveld Complex in South Africa, and the region has a wide array of chromium, nickel, copper, and platinum group element (PGE). The Zebediela project has the potential to produce approximately 500,000 tonnes of nickel using an open-pit mining method. The nearby target projects have shown good grade nickel quality on exploration. The Company is planning for 12-hole drill programme with a strike length of 5,000 metres and thickness in the range of 1.8 metres to 10 metres. The Company is confident that overall grade improvement could be achieved from drilling. The project has a nickel sulphide deposit that is the source for Class 1 nickel, which has a huge application in lithium batteries used in electric vehicles.

Recent Event

• On 6 May 2020, Uru Metals raised close to £200,000 through the issue of 235,294 shares at 85 pence per share. It also issued convertible loan note of USD 250,000 to Boothbay Absolute Return Strategies LP, and it has the option to extend the loan to USD 500,000 before the loan matures.

Share Price Performance Analysis

1-Year Chart as on September-1-2020, before the market close (Source: EODHD/Others, Thomson Reuters)

Uru Metals Limited's shares were trading at GBX 229.96 and were down by close to 6.14 percent against the previous closing price (as on 1 September 2020, before the market close at 10:15 AM GMT+1). URU's 52-week High and Low were GBX 350.00 and GBX 70.50, respectively. Uru Metals had a market capitalization of around £3.64 million.

Business Outlook

The Company is hopeful about the potential in the nickel market and the increasing demand of the Class 1 nickel as a battery metal. Uru Metals is looking at high-grade nickel exploration at Zebediela Nickel Sulphide project and plans to secure funding for the drilling programme. The Company has a vision of green nickel development, and the Environmental Impact Assessment (EIA) was implemented to ensure future mining is done in an eco-friendly manner. Given the covid-19 impact, the South African Department of Mineral Resources and Energy (DMRE) have extended the final submission date of EIA and Environmental Management Program (EMPR) to 15 January 2021.