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Unaudited Interim Results for the Six Months Ended 30 June 2021

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LONDON, August 31, 2021--(BUSINESS WIRE)--

Metal Tiger plc

("Metal Tiger" or the "Company")

Unaudited Interim Results for the six months ended 30 June 2021

Metal Tiger plc (AIM: MTR, ASX:MTR), the AIM and ASX listed investor in natural resource opportunities, is pleased to announce interim results for the six months ended 30 June 2021. The interim accounts are unaudited but have been subject to a review by the Group’s auditors.

Key Highlights:

Six months to 30 June 2021

  • Completion of the Kalahari Metals Limited ("Kalahari Metals") / Cobre Limited ("Cobre") transaction subject to for receipt of change of control consent from the Minister of Mineral, Energy and Water Resources of the Republic of Botswana ("Botswana Consent"). Metal Tiger currently holds 50.01% in Kalahari Metals and Cobre 49.99% and this will change to 49% and 51% respectively following Botswana Consent.

  • Committed to an investment of A$1.413m in Cobre (subject to shareholder approval) as part Cobre’s A$6.7m fundraise with sophisticated and institutional investors.

  • Kalahari Metals Joint Venture Board approved a major drilling programme and drilling commenced at Kitlanya East (Endurance and Perseverance targets) in May 2021.

  • On the 27 May 2021, successfully completed a compliance listing on the Australian Securities Exchange ("ASX"), expanding the Company’s profile, with the aim to provide access to new potential investors and to improve deal flow in Australia.

  • £1.8m invested in new passive investments and also completed 7 follow on passive investments. Fully exited from 8 passive investments and partially exited 14 passive investments.

  • Notable passive investments in the period include A$750,000 in Artemis Resources Limited (ASX:ARV), C$1,000,000 in Camino Minerals Corporation (TSXV:COR), C$450,000 in Pan Global Resources Inc (TSXV:PGZ) A$300,000 in Antipa Minerals Limited (ASX:AZY), US$225,000 in Trident Royalties PLC (AIM:TRR).

  • Active US$750,000 invested into Armada Exploration Limited ("Armada") for an 18.5% interest alongside RCF Opportunities Fund L.P. ("RCF") and Cobre. Armada’s holds two exploration licences, prospective for Ni-Cu sulphide, in Gabon, covering a total area of nearly 3,000km2 as part of a frontier district-scale exploration opportunity. Armada initial public offering ("IPO") targeted for 2021.

  • Follow up investments in Southern Gold Limited ("Southern Gold") to bring total position to 19.1%.

  • Continued shareholder support with the exercise of 2,598,437 warrants at an average price of 20.5p raising cash proceeds of £531,000.

  • Dividend received from Sandfire Resources Limited ("Sandfire") (ASX:SFR) of £287k and £115k used to lower the amount payable under the Equity Collar Derivative Facility.

Post period end

  • Successful completion of conditional raise of A$5,000,000 (approximately £2.677m) (before costs), at a placing price of A$0.37 (approximately 20p) per CHESS Depositary Interest ("CDI") on the ASX. The Placing is expected to facilitate additional liquidity to the Company’s ASX quotation and assist Metal Tiger to establish an increased presence in the Australian market. The net proceeds are to be applied across Metal Tiger’s global resources investments.

  • Sandfire received the Mining Licence for the Motheo Copper Mine from the Government of Botswana, marking the last major permitting milestone required for full-scale construction of the US$279m capex project. Sandfire is on-track to commence mining at Motheo in early CY2022 delivering first production in early 2023. Metal Tiger has a capped US$2m 2% net smelter return royalty ("NSR") over the Motheo Copper Mine.

  • Sandfire released an updated JORC 20121 Indicated and Inferred Mineral Resource Estimate ("MRE") for the A4 Copper-Silver Deposit, located 8km west of the permitted Motheo Copper Mine in Botswana of:

    • 9.8Mt at 1.4% Cu and 21g/t Ag for 134,000t of contained copper and 6.6Moz of contained silver (using a 0.5% Cu cut-off) marking a 34% increase in total contained copper compared with the maiden Inferred MRE announced in December 2020.

    • 93% of contained copper now reported in the higher confidence Indicated Mineral Resource category and available for inclusion in Ore Reserves.

    • Metal Tiger has a 2% uncapped net smelter royalty over circa 8,000km2 of Sandfire’s licence holdings in the Kalahari Copper Belt including PL190/2008 (excluding the Motheo Copper Mine project area), which hosts the A4 deposit.

    • A maiden Ore Reserve is expected to be published during Q4 2021 and will inform the A4 Feasibility Study for completion during the Q1 2022.

  • Sandfire has commenced a substantial diamond drilling program to test several targets along the A4 Dome. Drilling is focused on targets with potential for high-grade vein hosted mineralisation in the upper part of the Dome and the potential for extensive mineralisation associated with the Ngwako Pan Formation (NPF) contact below the Dome.

  • Drilling is also planned to commence at other high priority targets within 30km of the Motheo Copper Mine during Q3 2021. Targets include the large A1 Dome located 25km along strike from A4 and the T1 and T2 East prospects located 10km north of A1.

  • Following completion and interpretation of a fixed-wing airborne magnetic and gravity geophysics survey, Kalahari Metals commenced drilling at Kitlana West testing the first of two targeted airborne electromagnetic ("AEM") anomalies.

  • Invested C$500,000 in Anacortes Mining Corp and a further £307,262 invested post period end in 3 new passive investments.

Key Performance Indicators

Unaudited
Six months ended
30 June 2021

Unaudited
Six months ended
30 June 2020

Audited
Year ended
31 December 2020*

Total comprehensive (loss)/profit attributable to owners of the parent

(471)

(3,483)

3,970

Net asset value

£31,285,000

£23,063,000

£31,186,000

Net asset value per share *

20.1p

15.1p

20.3p

Closing share price

25.5p

25.0p

23.5p

Share price premium/(discount) to net asset value*

27%

65%

16%

Market capitalisation

£39,757,000

£38,052,000

£36,028,000

* Based on shares in issue at the period end.

For further information on the Company, visit: www.metaltigerplc.com

Enquiries:

Michael McNeilly

(Chief Executive Officer)

Tel: +44 (0)20 3287 5349

Mark Potter

(Chief Investment Officer)

James Dance

James Harris

Robert Collins

Strand Hanson Limited (Nominated Adviser)

Tel +44 (0)20 7409 3494

Paul Shackleton

Steve Douglas

Arden Partners plc (Broker)

Tel: +44 (0)20 7614 5900

Gordon Poole

James Crothers

Rebecca Waterworth

Camarco (Financial PR)

Tel: +44 (0)20 3757 4980

Notes to Editors:

Metal Tiger PLC is admitted to the AIM market of the London Stock Exchange AIM Market ("AIM") and the ASX Market of the Australian Securities Exchange Market ("ASX") with the trading code MTR and invests in high potential mineral projects with a base, precious and strategic metals focus.

The Company's target is to deliver a high return for shareholders by investing in significantly undervalued and/or high potential opportunities in the mineral exploration and development sector. Metal Tiger has two investment divisions: Equity Investments and Project Investments.

Equity Investments invests in undervalued natural resource companies. The majority of its investments are listed on AIM, the TSX and the ASX, which includes its interest in Sandfire Resources Limited (ASX: SFR). The Company also considers selective opportunities to invest in private natural resource companies, typically where there is an identifiable path to IPO. Through the trading of equities and warrants, Metal Tiger seeks to generate cash for investment for the Project Investments division.

Project Investments is focused on the development of its key project interests in Botswana, where Metal Tiger has a growing interest in the large and highly prospective Kalahari copper/silver belt through its interest in Kalahari Metals Limited.

The Company actively assesses new investment opportunities on an on-going basis and has access to a diverse pipeline of new opportunities in the natural resources and mining sectors. For pipeline opportunities deemed sufficiently attractive, Metal Tiger may invest in the project or entity by buying publicly listed shares, by financing privately and/or by entering into a joint venture.

Chairman’s Statement

The first half of 2021 continued to be a challenging environment in which to operate. Many countries were hit by a further wave of the COVID-19 delta variant and resulted in complete or partial lockdowns. The effects to the world economy have to some extent been mitigated by the implementation of aggressive vaccination programmes to many countries’ adult populations. As a result, there has not been the hard shock to the world markets that we saw in the first half of 2020. The commodities market remains very resilient and has built on the gains registered in 2020. The majority of the commodities that Metal Tiger is exposed to through its project and equity investments saw new cyclical highs during the first half of 2021. The increasing focus on the "Green Revolution" and many Countries initiating policy statements adopting electric vehicles has meant that copper has seen increasing demand.

The company entered 2021 with a strong and liquid balance sheet on the back of a successful and yet challenging 2020. In the first half of 2021 Metal Tiger was very active in seeking and making new investments, with passive investments totalling £1.8m being made in the period. Furthermore, following due diligence and negotiations an investment in Armada was concluded alongside RCF and Cobre adding another Active investment to the portfolio and providing exposure to a frontier district scale nickel-copper exploration company. I am informed that Armada’s ASX IPO is progressing well and that Canaccord and PAC Partners have been appointed as joint lead managers to the IPO. On top of this we completed the Cobre / KML transaction and Kalahari Metals (where Metal Tiger holds a 50.01% investment alongside Cobre’s 49.99% interest) commenced drilling at Kitlanya East and more recently at Kitlanya West.

Post period end there have been material developments in relation to a substantial increase in Sandfire’s A4 copper/silver resource. The resource increased 34% in terms of contained copper for approximately 134kt of Cu with 93% in the indicated category. Furthermore, we take great encouragement around Sandfire’s stated timelines for production for the permitted Motheo Mine in early 2023 especially the intention to rapidly progress to an expanded 5.2Mtpa case incorporating A4 as soon as possible. I note that according to Sandfire’s guidance an A4 Mineral Reserve Estimate is expected by the end of 2021, which is to be followed by a Feasibility Study in early 2022. These two milestones along with any eventual permits for A4 will mark critical future milestones for Metal Tiger’s 2% uncapped NSR royalty. Given Sandfire’s aggressive exploration to date and substantial exploration budget commitments the Board is confident that Sandfire will continue to deliver additional discoveries and add increased copper tonnage in areas covered by the uncapped royalty.

I am also pleased to note the recent successful placing on the ASX listing to new institutional, sophisticated investors as well as existing shareholders which raised A$5m via the issue of new ASX quoted Chess Depositary Interests. We look forward to welcoming new investors and promoting the success of the ASX quotation as we increasingly try to build our presence in Australia complementing the company’s AIM quotation.

Project Investments

The Project Investments segment includes investments into mineral exploration and development projects either through subsidiaries, associates or joint venture companies, operated by in-country partners who have the requisite knowledge and expertise to advance projects.

Botswana - Kalahari Metals Limited

The Company holds an interest in a mining project located in the Republic of Botswana. The project investment comprises an equity investment and a joint venture arrangement with Kalahari Metals. As announced on 12 April 2021, the Company has a 50.01% (H1 2020: 62.2%; 2020 full year: 62.2%) interest in Kalahari Metals, a private copper exploration company with direct and indirect exposure to twelve exploration licences in the Kalahari Copper Belt ("KCB") covering 8,714km2. Cobre holds the remainder of the shareholding.

On 15 December 2020, Kalahari Metals signed a Share Purchase Agreement and Shareholders Agreement with Cobre, pursuant to which, Cobre agreed to purchase 49.99% of Kalahari Metal's shares, in exchange for newly issued shares in Cobre. Upon completion of the Transaction, and subject to obtaining change in control approval from the Minister of Minerals, Energy and Water Resources of the Republic of Botswana, Cobre will increase its shareholding in Kalahari Metals to 51% and Metal Tiger will reduce its shareholding to 49%.

On 6 April 2021, the Company announced that Cobre shareholders voted in favour of the conditional acquisition by Cobre of 51% of the issued share capital in Kalahari Metals, and as such, all conditions of the Transaction were satisfied, save for final receipt of the change in control approval from the Minister of Minerals, Energy and Water Resources of Botswana.

On 12 April 2021, the Company announced that the Kalahari Metals Transaction completed with Cobre purchasing 49.99% of the Kalahari Metal's shares in exchange for 20,999,214 newly issued ordinary shares in Cobre. Metal Tiger received 5,106,963 new Cobre Shares, increasing its holding to 26,006,963 Cobre Shares, representing approximately 16.62% of Cobre's enlarged share capital. Following the transfer, Metal Tiger holds 50.01% interest in Kalahari Metals with Cobre holding the remaining interest.

On 19 April 2021, Metal Tiger announced that the joint venture board of Kalahari Metals approved a major new drilling programme focussed on the discovery of copper/silver deposits on the Kalahari Copper Belt.

On 11 May 2021, drilling commenced on the Kitlanya East Project are in Botswana.

Thailand

Metal Tiger retains twelve exploration licence applications in Thailand which have been fully progressed at the relevant permitting body, the Department of Primary Industries and Mines, and to the Company’s knowledge as at the date of publication of these accounts, remain in good standing. Should these exploration licence applications be granted, and confirmation of such is awaited, the Board will consider whether or not to pursue appropriate exploration programmes at the time of granting.

Equity Investments

The Equity Investments segment continues to invest in high potential mining exploration and development companies with a preference for base and precious metals. The Company’s focus is to invest in mining companies that are significantly undervalued by the market and where there is substantial upside potential through exploration success and/or development of a mining project towards commercial production. To differentiate between the Board’s view of the Company’s strategy we categorise certain investments as either Active or Passive.

Active investments are typically larger investments, where Metal Tiger seeks to positively influence the management of investee companies by providing oversight and guidance at Board level to enhance shareholder value and minimize downside risk.

Metal Tiger's Passive investments are typically direct purchases of listed mining equities and warrants but may include other investment structures. The Company’s aim is to make capital gains in the short to medium term from its Passive investments. Investments are considered individually based on a variety of criteria. Investments are typically stock exchange traded on the TSX, ASX, AIM or LSE but can be private with a view to obtaining an eventual liquidity event.

As at 30 June 2021, as set out in the table below, Metal Tiger had equity investments in companies pursuing high potential exploration and development projects in precious, base and battery metals. Projects are located in a variety of jurisdictions, including North America, South America, Africa, South East Asia and Australia.

Through its investments, Metal Tiger is primarily exposed to copper and gold. The copper price in H1 2021 was exceptionally strong hitting a high of US$4.90/lb in May 2021, with a majority of financial institutions (notably Goldman Sachs) and several top industry executives supporting and promoting their estimation that copper prices would go higher and would need to remain high to encourage supply to meet the new and critical demand that will be necessitated by a global switch to a sustainable future. There were also several geopolitical and COVID-19 related reasons for the price strength.

The Board remains very optimistic on the structural need for copper and as such is confident that there will be a significant increase in demand for copper from several key sustainable categories. On the supply side the Board notes that whilst there is strong visibility on production there remain risks to the downside with regard copper production that could help support increased prices even if the demand side of the equation, which is largely based on projections turned out to be less than several financial institutions have projected. The first half of 2021 saw the gold price drop 6.6%, driven largely by higher interest rates and driven by a more hawkish tone by the United States Federal Reserve. The Board remains confident of a stronger H2 2021 for gold given the continued uncertainties globally with regard to COVID-19 and a belief that the hawkishness of the US Federal Reserve will largely get priced in at some point during H2 2021, either through continued hawkish statements or through actual actions (more likely a combination of both). Since 30 June 2021 copper prices have softened from May 2021 highs whilst gold experienced a flash crash but is now largely trading in line with period end.

Metal Tiger continues to deliver on identifying high conviction natural resource opportunities in line with its investment approach and whilst the Company continued to largely focus on undervalued investment situations with the potential for substantial exploration upside, we still managed to maintain a strong level of diversification in the passive investment portfolio in terms of commodity, jurisdiction and project development stage. In addition, Metal Tiger has managed to increase its warrant portfolio through investment in the period. Only one new Active Investment was made in H1 2021.

Summary of listed investments held at 30 June 2021

Investment

Listing
Exchange2

Description

No. of securities held

Value at
period end
£

Sandfire Resources Limited

ASX

Copper, gold and silver mining and exploration

2,842,667 ordinary shares (held as a non-current asset as security for loan)

10,538,687

3,300,690 ordinary shares (uncharged)

12,236,728

Cobre Limited

ASX

Base metal exploration

26,006,963 ordinary shares

2,258,653

Southern Gold Limited

ASX

Gold mining and exploration

40,794,000 ordinary shares

1,550,009

7,284,500 unlisted warrants (A$0.18 expiry 19/10/2022)

43,495

Camino Minerals Corp.

TSXV

Copper exploration

5,882,353 ordinary shares

582,600

2,941,176 unlisted warrants (C$0.25 expiry 18/5/2023)

151,647

Pan Asia Metals Limited

ASX

Lithium and tungsten exploration

6,830,713 ordinary shares

482,002

Pan Global Resources Inc

TSXV

Base and precious metal exploration

1,176,944 ordinary shares

479,981

694,444 unlisted warrants (A$0.28 expiry 20/02/2022)

186,877

Artemis Resources Limited

ASX

Copper, gold and cobalt exploration and development

14,357,353 ordinary shares

405,244

Antipa Minerals Limited

ASX

Copper, gold and silver exploration

6,042,860 ordinary shares

134,483

Thor Mining plc

AIM/ASX

Molyhil Tungsten Project

11,750,000 ordinary shares

108,570

12,500,000 unlisted warrants (1p expiry 23/01/2022)

52,975

Avidian Gold Corp

TSXV

Copper and gold exploration

1,000,000 ordinary shares

99,042

500,000 unlisted warrants (C$0.2 expiry 8/6/2024)

29,276

Inflection Resources Limited

CSE

Copper and gold exploration

468,750 ordinary shares

98,313

234,375 unlisted warrants (C$0.5 expiry 14/5/202)

17,751

Geopacific Resources Limited

ASX

Gold development

580,000 ordinary shares

96,808

Barton Gold Limited

ASX

Gold exploration

800,000 ordinary shares

86,848

Los Cerros Limited

ASX

Gold exploration

870,000 ordinary shares

80,280

Trident Royalties Plc

AIM

Mining royalties and streaming

189,043 ordinary shares

71,836

Tier One Silver Inc.

TSXV

Silver, gold and base metals exploration

87,500 ordinary shares

70,859

Aurelius Minerals Inc.

TSXV

Gold exploration

2,500,000 ordinary shares

66,999

100,000 unlisted warrants (C$0.07 expiry 15/7/2022)

16,604

Catalyst Metals Limited

ASX

Gold exploration

55,000 ordinary shares

58.215

Tanga Resources Limited

ASX

Gold exploration

2,500,000 ordinary shares

55,637

Australian Gold and Copper Limited

ASX

Gold and copper exploration

500,000 ordinary shares

37,996

Monarch Mining Corp.

TSXV

Gold exploration

70,000 ordinary shares

35,888

Sable Resources Limited

TSXV

Gold and silver exploration

1,166,666 unlisted warrants, (A$0.2 expiry 10/9/2023)

115,957

Marimaca Copper Corp.

TSXV

Copper exploration

70,978 unlisted warrants

(C$4.1 expiry 31/12/2022)

53,302

Palladium One Mining Inc.

TSXV

Nickel and copper exploration

170,000 unlisted warrants (C$0.45 expiry 22/2/2023)

1,446

Summary of unlisted investments held at 30 June 2021

Investment

Listing
Exchange2

Description

No. of securities held

Value at
period end
£

Armada Exploration Limited

Private

Nickel and copper exploration

5,000,000 ordinary shares

541,800

3,333,333 unlisted warrants (C$0.225 expiry 01/04/2024)

-

Moxicon Resources

Private

Copper producer

500,000 ordinary shares

140,000

Millenial Silver Corp.

Private

Exploration

150,000 ordinary shares

80,108

Tally Limited

Private

Gold currency

3,840,909 ordinary shares

58,000

Mt. Malcolm Mines NL

Private

Gold exploration

500,000 ordinary shares

27,140

During the period the segment acquired investments at a total cost of £4,561,000 and disposed of investments for £4,438,000 and a realised profit of £1,191,000. After considering the revaluation of the investments the net assets of the segment increased by £398,000 during the period to £29,741,000 (30 June 2020: £23,940,000; 31 December 2020: £29,343,000).

After accounting for the profit on disposals, dividends received and the revaluation of investments at the period end, the equity investments segment recorded a net profit of £1,751,000 for the period versus a loss in H1: 2020 of £1,694,000.

Overview of material investments as of 30 June 2021:

Sandfire Resources Limited

Sandfire Resources is an ASX listed (ASX:SFR) mid-tier mining and exploration company. Sandfire Resources operates the high-margin Degrussa Copper-Gold Mine, located 900km north of Perth, Western Australia.

Sandfire Resources also has development and exploration projects in North America and Botswana. The Company holds 6,143,357 ordinary shares in Sandfire Resources as of 30 June 2021 representing a 3.4% shareholding. Metal Tiger has an Equity Option and Loan Facility Master Agreement (Financing Arrangement) with Macquarie bank that allows it to enter into certain covered derivative contracts over its equity holdings.

In aggregate, the financing arrangements entered into by Metal Tiger are secured over 2,842,667 Sandfire shares held by Metal Tiger, representing approximately 1.59% of Sandfire’s issued share capital.

Sandfire concluded H1 with a very strong cash position of A$574m and no debt having produced 35,055 tonnes of copper and 18,116 ounces of gold from its DeGrussa operations. C1 cash costs increased slightly during the period. Sandfire noted that Sandfire Resources America was progressing a Feasibility Study enhancement for the Black Butte copper project as well as conducting an exploration program to identify additional Mineral Resources in close proximity to planned infrastructure.

Sandfire noted that resource definition drilling continued at the Old Highway Gold Prospect as well as studies for the Company’s gold transition strategy. Sandfire noted guidance for FY2022 of 64-68kt Cu and 30-33koz Au; with C1 costs of circa US$1.00 – 1.10/lb.

Sandfire progressed several critical steps for the Motheo Mine to progress including awarding the Mining Contract for the T3 Open Pit to African Mining Services (AMS), a surface mining business of diversified global mining services group Perenti Global Limited.

Cobre Limited

Cobre is an ASX listed (ASX:CBE) resource exploration company which is progressing the copper-gold-silver-zinc VHMS exploration stage Perrinvale Project in Western Australia. Cobre holds a 49.99% interest in Kalahari Metals, as well as an 18.5% interest in Armada. The Company holds 26,006,963 ordinary shares as of 30 June 2021 representing 16.62% of Cobre's issued ordinary share capital of Cobre.

Metal Tiger is interested in an additional 8,311,765 new ordinary shares at a price of A$0.17 per share, subject to Cobre shareholder approval of Metal Tiger's participation in the fundraise. Following shareholder approval and completion of the fundraise, Metal Tiger will hold 34,318,728 shares, representing 20.72% interest in Cobre.

In addition, Metal Tiger expects to be issued a further 445,368 shares, subject to obtaining change in control approval from the Minister of Mineral Energy and Water Resources of the Republic of Botswana in respect of the Kalahari Metals. Assuming all further issuances occur, Metal Tiger would be interested in approximately 21% of Cobre.

On 6 April 2021, Cobre announced at an extraordinary general meeting, that its shareholders had approved its investment in Kalahari Metals. The key terms being the acquisition of a 51% interest in Kalahari Metals Limited.

Cobre commenced field exploration at Perrinvale towards the end of April 2021 with a 6 month time-frame with the goal of delineating potential future areas of interest for drill testing or further exploration. Please reference Cobre's announcement of 29 April 2021 for further details.

In March 2021 Cobre invested US$750k alongside Metal Tiger and RCF into Armada Exploration Limited for an 18.5% stake.

Michael McNeilly, Executive Director and Chief Executive Officer of Metal Tiger, was appointed to the board of Cobre as a nominee Non-Executive Director representing Metal Tiger.

Southern Gold Limited

Southern Gold is an ASX listed resource exploration and development company with gold epithermal exploration properties in South Korea. Metal Tiger currently holds 40,794,000 shares as of 30 June 2021 representing 19.1% of the issued share capital of Southern Gold as well as 7,284,500 A$0.18 warrants expiring on 19 October 2022.

Michael McNeilly was appointed on 5 June 2020 as a Non-Executive Director of Southern Gold. At Southern Gold's annual general meeting held on 26 November 2020, Michael McNeilly, Executive Director and Chief Executive Officer of Metal Tiger was appointed as a Director of Southern Gold.

On 29 June 2021, Southern Gold announced that it had agreed commercial terms for the completion of the sale of Southern Gold’s Gubong and Kochang Joint Venture interests. Up to 200 million shares will be issued in Bluebird Merchant Ventures Ltd (LSE:BMV), of which, 50 million have been issued and 150 million shares will be subject to BMV issuing an approved prospectus. BMV has the flexibility to pay cash in lieu of all or some of the 150 million shares on a US$0.05/share basis. The market value of the deal at the deemed issue price of US$0.05/share was a nominal value of US$10 million. Operationally, the primary focus was on field reconnaissance sampling, soil sampling and the commencement of the diamond drill program targeting the northern section of the Golden Surprise trend at the Deokon Project. A total of two HQ3 diamond drill holes for 251.2m was completed in Q2, utilizing one drill rig. The period saw scout drilling at the Geum Mar Project and drilling at the Aphae Project.

Armada Exploration Limited

Armada is a Mauritian holding company which owns 100% of Armada Exploration (Gabon) SARL. Armada was established to define new belt-scale discovery opportunities for key commodities (principally nickel and copper) in under-explored regions of Africa. It currently holds two exploration licences, prospective for magmatic Ni-Cu sulphide, in Gabon, covering a total area of nearly 3,000km2. The licence holding is considered to present a frontier district-scale exploration opportunity.

In March 2021 Metal Tiger subscribed for 5,000,000 shares for total consideration of US$750,000 via a promissory note with US$350,000 to be invested up front and the remaining consideration to be paid in monthly instalments over a period of 5 months, of which one instalment was paid prior to 30 June 2021. Metal Tiger holds an 18.5% direct interest in the share capital of Armada. Metal Tiger also holds an indirect interest in Armada, via its 16.62% holding in Cobre, which holds an 18.5% interest in Armada.

Metal Tiger has received 3,333,333 36-month options issued at US$0.225, which will potentially be repriced as part of the planned ASX IPO. Metal Tiger also has the right to appoint a director to the Board of Armada (or equivalent holding company, in the event of a restructuring as part of a listing).

Michael McNeilly has been appointed as a Director to Armada Metals Limited, the planned Australian entity list-company but no restructuring has taken place as at the time of this report.

Camino Minerals Corporation

Camino is a discovery and development stage copper exploration company that undertakes exploration in Peru. Its focus is on acquiring a portfolio of advanced copper assets that have the potential to deliver copper into the economy. It is comprised of the Maria Cecilia Project, Los Chapitos Project and Plata Dorada Project. It is listed on the Toronto Stock Exchange ("TSX").

Metal Tiger holds 5,882,353 ordinary shares in Camino, representing circa 3.4% of the issued share capital of the company. Metal Tiger also holds 2,941,176 warrants at an exercise price of C$0.25 expiring on 18 May 2023.

Exercise of warrants

In the first half of 2021, the shareholders of the company showed their continued support of the company by exercising a total of 2,598,437 warrants in at an average price of 20.5p raising £532,000 in cash.

Results for the period

Administration costs for the period were £1,239,000 (2020 H1: £1,361,000; 2020 full year: £2,934,000). The downward trend reflects the Boards continuous drive for efficiencies which remains ongoing.

There was an overall profit in the period resulting from the disposals and fair valuing of investments during the period of £1,686,000 (H12020: loss of £1,640,000; 2020 full year: gain of £3,801,000) reflecting market conditions in the period and the quality of the underlying portfolio, the receipt of dividend income of £288,000 and net finance cost of £1,293,000 mainly relating to the change in value of the derivatives securing the Group’s bank loans, the loss for the period on ordinary activities before tax was £567,000 (H1 2019: loss £3,372,000; 2020 full year: profit £3,787,000).

Cashflow and financing

Disposals from equities during the year raised £4,438,000 and a further net £4,561,000 was invested into the purchase of equities and other investments. Operational cash outflows before working capital changes amounted to £1,190,000 (H1 2019: £1,326,000; 2020 full year: £2,441,000).

The net cash requirement for funding both investments and operations, was met out of cash generated by the exercise of warrants and cash reserves of £458,000 at the beginning of the period. There was no need to draw down on the equity derivative collar financing arrangement put into place in 2019 with a global investment bank.

Cash in hand at the end of the period was £261,000 (H1 2020: £1,126,000; 2020 full year: £458,000).

No dividend has been declared or recommended during the period under review (H1 2020: none; 2020 full year: none).

Developments since 30 June 2021:

Capital raise

Successful completion of conditional raise of A$5,000,000 (approximately £2.677m) (before costs), at a placing price of A$0.37 (approximately 20p) per CHESS Depositary Interest ("CDI") on the ASX. The Placing is in two parts with Tranche 1, where 10,810,811 new CDIs, were issued and A$4,000,000 pre-costs has been received. Tranche 2, in which Cobre conditionally subscribed to 2,702,703 new CDI’s, conditional on shareholder approval from a shareholders meeting which is to take place on the 15 September 2021, will result in a further A$1,000,00 pre-costs accruing to the company in cash. The placing is expected to facilitate additional liquidity to the Company’s ASX quotation and assist Metal Tiger to establish an increased presence in the Australian market. The net proceeds are to be applied across Metal Tiger’s global resource related investments.

Project investment

Kalahari Metals Limited

A fixed-wing airborne magnetic and gravity geophysics survey completed with initial interpretation helping to map out an east-northeast ("ENE") trending gravity low, likely related to the development of a deeper sub-basin in the lower Kalahari Copper Belt ("KCB") basin, the margins of which are considered prospective sites for Cu-Ag mineralisation.

Diamond drilling commenced, testing the first of two prominent AEM conductors along with a series of short vertical percussion holes to confirm underlying geology and cover thickness and provide geochemical samples from the base of the unconsolidated Kalahari cover sediments in the survey area. Further updates with regard to drilling will be provided in due course. For further details, please refer the announcement of 14 July 2021.

Drilling continues at Kitlanya East, further updates will be provided in due course.

Equity Investments

Summary of investments made between 30 June 2021 and the date of release of the interim report

Investment

Listing
Exchange2

Description

No. of securities acquired

Anacrotes Mining Corp

Private

Nickel and copper exploration

1,250,000 ordinary shares

625,000 unlisted warrants (C$0.55 expiry 22/07/2023)

Apollo Gold and Silver Corp.

TSXV

Silver, gold and base metals exploration

220,000 ordinary shares

110,000 unlisted warrants (C$1.25 expiry 5/7/2023)

Artemis Resources Limited

TSXV

Gold exploration

2,104,518 ordinary shares

Cannon Resources Limited

Private

Base metal Exploration

250,000 ordinary shares

83,333 unlisted warrants (A$0.2 expiry 30/6/2024)

Los Cerros Limited

ASX

Gold exploration

2,110,000 ordinary shares

Thor Mining plc

AIM/ASX

Molyhil tungsten project

11,538,462 ordinary shares

5,769,231 unlisted warrants (1.3p expiry 17/8/2023)

Tier One Silver Inc.

TSXV

Silver, gold and base metals exploration

10,000 ordinary shares

Heavy Minerals Limited

Private

Mineral sands exploration

1,750,000 ordinary shares

Cobre Limited

A field programme at Perrinvale continues with the primary activities being soil and rock chip sampling and geological mapping aimed at validating the model and vectoring to the definition of future drill targets.

Drilling continues in Botswana via Kalahari Metals Limited with further updates anticipated to be made in due course.

Southern Gold Limited

Robert Smillie, a geoscientist with more than 30 years of experience has been appointed as Exploration Manager and is expected to be based in South Korea and is the start of an initiative to get more in-country technical expertise on the ground to increase project generation and expand the project drill pipeline.

Simon Mitchell, Managing Director of Southern Gold will leave the company on 29 October 2021. A global executive search firm has been mandated with finding a new Managing Director with the requisite skills to lead Southern Gold’s strategy as a South Korean-focused gold exploration company.

Armada Exploration Limited

The ASX-IPO is progressing well with brokers Canaccord and PAC Partners having been appointed as Joint Lead Managers to the IPO. Further updates will be provided in due course.

Camino Minerals Corporation

Since the Company’s investment into Camino, leftist candidate Pedro Castillo, a socialist, became Peru’s first left-wing president in more than a generation. Whilst his cabinets plan for government has been more moderate than what was proposed during the election campaign, it is still proposing a new tax on profits for mining companies reviewing royalty arrangements and looking for an end to tax breaks. Camino closed the acquisition of the Maria Cecilia Porphyry complex as part of investment collaboration with the private equity vendor Denham Capital in July 2021. Exploration work continues at the Los Chapitos copper project with a geophysics campaign consisting of 258 line km of Magnetic Vector Inversion Modelling (the "Magnetic Survey") commencing in July at the northern extension of the project with the aim of extending mineralisation 4 to 5 km to the north of previously drilled areas.

Conclusions

The Board is very confident about the Company’s future as it continues to implement its investment strategy. I am very pleased with the efforts undertaken to bring about the compliance listing on the ASX and it is highly encouraging that the Company successfully raised A$5m from new institutional and sophisticated investors as well as received the support of existing investors.

The Company continues to have a very strong financial position and will continue to implement its investment strategy with the aim of growing and strengthening the financial position of the company. The period saw the conclusion of the Cobre / Kalahari Metals transaction and the commencement of drilling across two project areas. The Board is also pleased with the addition of Armada to the Active portfolio and is confident that a successful ASX IPO will be delivered this calendar year. It is encouraging to see the conclusion of the BMV deal with Southern Gold. The positive steps that have been taken post period end boosts our conviction that the Active strategy is working and our convictions with regard to the prospective nature of South Korea for economic epithermal gold potential remain unchanged.

The Board believes that Sandfire as at the time of publication remains undervalued on fundamentals. No collar facilities were utilised during the period, but the liquidity profile and ability to access the equity derivative collar financing facilities presents the company with a lot of flexibility as it identifies investment opportunities and expands and supports its existing portfolio.

The Board takes great encouragement from the positive updates regarding the progress of the development of the Motheo Mine, the expanded A4 resource and the exploration intentions of Sandfire on areas covered by Metal Tiger’s uncapped 2% NSR. The Board believes that the royalty has the potential to become a tier 1 royalty in due course.

I would like to take this opportunity to thank all our advisers and partners. The Company’s success has been helped by the quality of those engaged around the world. Thank you to our shareholders, many of whom have held shares in the Company for the past six years, who share our resolve to create high investment returns. We are working hard and will continue to strive to deliver significant value from all our investments.

Charles Hall

Chairman

Condensed Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2021

Notes

Unaudited
Six months ended
30 June 2021
£’000

Unaudited
Six months ended
30 June 2020
£’000

Audited
Year ended
31 December 2020
£’000

Net profit on disposal of investments

1,191

17

745

Movement in fair value of fair value accounted equities

495

(1,657)

3,056

Share of post-tax (losses)/profits of equity accounted joint ventures

(9)

14

(25)

Provision against cost of equity accounted joint ventures

-

(731)

(731)

Investment income

288

161

648

Other income

-

-

3,638

Net profit/(loss) before administrative expenses

1,965

(2,196)

7,331

Administrative expenses

(1,239)

(1,361)

(2,934)

Operating profit/(loss)

726

(3,557)

4,397

Finance income

349

342

74

Finance costs

(1,642)

(157)

(684)

(Loss)/Profit before taxation

3

(567)

(3,372)

3,787

Tax on (loss)/profit on ordinary activities

4

-

-

(Loss)/Profit on ordinary activities after taxation

(567)

(3,372)

3,787

Other comprehensive income - Items which may be

subsequently reclassified to profit or loss:

Exchange differences on translation of foreign operations

93

(110)

183

Total comprehensive (loss)/profit for the period

(474)

(3,482)

3,970

(Loss)/Profit for the period attributable to:

Owners of the parent

(567)

(3,372)

3,787

Non-controlling interest

-

-

(567)

(3,372)

3,787

Total comprehensive (loss)/profit for the period attributable to:

Owners of the parent

(471)

(3,483)

3,970

Non-controlling interest

(3)

1

(1)

(474)

(3,482)

3,969

Earnings per share

Basic (loss)/earnings per share

5

(0.4)p

(2.2)p

2.5p

Fully diluted (loss)/earnings per share

5

(0.4)p

(2.2)p

2.5p

Condensed Consolidated Statement of Financial Position
At 30 June 2021

Notes

Unaudited
30 June 2021
£’000

Unaudited
30 June 2020
£’000

Audited
31 December 2020
£’000

Non‐current assets

Intangible assets

23

28

27

Property, plant and equipment

17

8

21

Investment in joint ventures

2,550

3,236

3,198

Other non-current asset investments

6

10,646

7,252

9,126

Royalties receivable

5,056

1,295

4,866

Total non-current assets

18,292

11,819

17,238

Current assets

Equity investments accounted for under fair value

7

20,614

16,651

20,768

Trade and other receivables

527

398

574

Amounts due from related parties

8

32

-

-

Cash and cash equivalents

261

1,126

458

Total current assets

21,434

18,175

21,800

Current liabilities

Trade and other payables

(537)

(222)

(326)

Amounts due to related parties

8

-

(941)

(306)

Loans and borrowings

(48)

(56)

(52)

Total current liabilities

(585)

(1,219)

(684)

Net current assets

20,849

16,956

21,116

Non-current liabilities

Loans and borrowings

9

(6,666)

(5,583)

(7,051)

Other non-current liabilities

6

(1,074)

-

-

Contingent consideration

(116)

(129)

(117)

Total non-current liabilities

(7,856)

(5,712)

(7,168)

Net assets

31,285

23,063

31,186

Capital and reserves

Called up share capital

156

152

153

Share premium account

13,424

12,579

12,831

Capital redemption reserve

4

4

4

Share based payment reserve

2,300

1,806

2,257

Warrant reserve

5,173

5,509

5,476

Translation reserve

31

(357)

(62)

Profit and loss account

10,109

3,277

10,436

Total shareholders’ funds

31,197

22,970

31,095

Equity non-controlling interests

88

93

91

Total equity

31,285

23,063

31,186

Condensed Consolidated Statement of Cash Flows
For the six months ended 30 June 2021

Unaudited
Six months ended
30 June 2021
£’000

Unaudited
30 June 2020
£’000

Audited
Year ended
31 December 2020
£’000

Cash flows from operating activities

(Loss)/profit before taxation

(567)

(3,372)

3,787

Adjustments for:

Net gain on disposal of fair value accounted equities

(1,191)

(17)

(745)

Movement in fair value of investments

(495)

1,657

(3,056)

Share of post-tax losses/(profits) of equity accounted joint ventures

9

(14)

25

Movement In provision in, and write-offs of, equity accounted joint ventures

-

731

731

Share based payment charge for the period

43

31

482

Depreciation and amortisation

6

4

11

Other income

-

-

(3,638)

Investment income

(288)

(161)

(648)

Finance income

(349)

(342)

(74)

Finance costs

1,642

157

684

Operating cash flow before working capital changes

(1,190)

(1,326)

(2,441)

Decrease/(Increase) in trade and other receivables

26

(116)

(84)

Increase/(Decrease) in trade and other payables

214

(106)

(1,272)

Unrealised foreign exchange gains and losses

(70)

(33)

(38)

Net cash outflow from operating activities

(1,020)

(1,581)

(3,835)

Cash flow from Investing activities

Proceeds from current asset investment disposals

4,438

1,508

5,013

Purchase of intangible asset

-

-

(5)

Purchase of fixed assets

(2)

(4)

(22)

Sale of investment in, and loans to, joint ventures

300

(419)

(982)

Purchase of other fixed asset investments

-

(125)

(228)

Purchase of current asset investments

(4,561)

(4,210)

(7,219)

Investment income

288

182

648

Net cash inflow/(outflow) from investing activities

463

(3,068)

(2,795)

Cash flows from financing activities

Proceeds from issue of shares

532

-

221

Shares re-purchased

-

(423)

(423)

Loans drawn down

-

1,266

2,620

Loans repaid

(115)

(42)

(245)

Interest paid

(55)

(34)

(91)

Net cash inflow from financing activities

362

767

2,082

Net (decrease)/increase in cash in the period

(195)

(3,882)

(4,548)

Cash and cash equivalents at beginning of period

458

5,007

5,007

Effect of exchange rate changes

(2)

1

(1)

Cash and cash equivalents at end of period

261

1,126

458

Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 June 2021 (unaudited)

Called
up

Share
capital
£’000

Share
premium
account
£’000

Capital
Redemption
Reserve

£’000

Shares held
for treasury

£’000

Share
based

payment
reserve
£’000

Warrant
reserve
£’000

Translation
reserve
£’000

Retained
profits
£’000

Total equity
shareholders’

funds
£’000

Non-
controlling

interests
£’000

Total
equity
£’000

Balance at 1 January 2020

156

13,079

-

(77)

2,004

5,509

(246)

6,420

26,845

92

26,937

Period to 30 June 2020:

Loss for the period

-

-

-

-

-

-

-

(3,372)

(3,372)

-

(3,372)

Other comprehensive income

-

-

-

-

-

-

(111)

-

(111)

1

(110)

Total comprehensive income

-

-

-

-

-

-

(111)

(3,372)

(3,483)

1

(3,382)

Shares purchased and cancelled

(4)

(500)

4

77

-

-

-

-

(423)

-

(423)

Cost of share based payments

-

-

-

-

31

-

-

-

31

-

31

Transfer of reserves relating to exercise and expiry of options and warrants

-

-

-

-

(229)

-

-

229

-

-

-

Total changes directly to equity

(4)

(500)

4

77

(198)

-

-

229

(392)

-

(392)

Balance at 30 June 2020

152

12,579

4

-

1,806

5,509

(357)

3,277

22,970

93

23,063

Period to 31 December 2020:

Profit for the period

-

-

-

-

-

-

-

7,159

7,159

-

7,159

Other comprehensive income

-

-

-

-

-

-

294

-

(2)

292

Total comprehensive income

-

-

-

-

-

-

294

7,159