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Oil Capital

VSA Capital Market Movers - Metal Tiger, MOD Resources

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Metal Tiger (LON:MTR)

MTR’s JV partner MOD Resources (ASX:MOD) has announced that it has raised gross proceeds of A$14.6m in a share placement. The funds were raised at a price of A$0.062, a discount of 2.2% to the 15 day VWAP, with 235.42m new ordinary shares issued.

MTR holds a 30% interest at the project level, which is naturally unaffected by the placing. However, MTR additionally holds shares in MOD which at the last announcement were equal to 5.0% of the outstanding share capital. We now estimate that MTR’s holding in MOD shares is equivalent to 4.4%.

The T3 project in Botswana is one of the most attractive developing copper projects globally and we believe that MTR continues to offer investors attractive exposure to its development as well as the robust outlook for copper prices.

We reiterate our Buy recommendation and 5.68p/sh. target price.


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