PERTH, Western Australia, Feb. 23 /CNW/ - Tiger Resources Limited
(ASX/TSX code: TGS) is pleased to advise that major shareholder
Trafigura Beheer B.V. ("Trafigura") has agreed to exercise 71,112,398
options ("Options") for proceeds of approximately USD15.6 million.
The proceeds from the exercise of these Options will be used to complete
the Stage 1 development at the Kipoi Project, and fund an aggressive
exploration and drilling campaign planned for 2011 at targets on the
Kipoi and Lupoto licences, feasibility work for the Stage 2 development
at Kipoi and for general working capital purposes.
In conjunction with the exercising of these Options, Tiger and Trafigura
have agreed that Tiger will not draw down on the US$15 million
Subordinated debt facility that was to be provided by Trafigura for the
Stage 1 development of the Kipoi Copper Cobalt Project. The fully drawn
US$12 million debt facility with Trafigura remains outstanding, to be
repaid from surplus cash flow from the Stage 1 development.
The Options to be exercised comprise 61,112,398 options at A$0.215 per
share (previously expiring 5 May 2013) for A$13,139,166 and 10,000,000
options at A$0.24 per share (previously expiring 5 May 2013) for
A$2,400,000. After the exercise of the Options Trafigura will hold
173,798,416 shares and 24,216,577 options exercisable at A$0.24 per
share and expiring 5 May 2013. Trafigura's aggregate equity interest in
Tiger on a fully diluted basis will remain at approximately 28%.
Tiger Managing Director Brad Marwood said the "Board welcomed the
further significant investment as a demonstration of Trafigura's
confidence in the Company and in particular the Stage 1 development at
"Tiger's extensive exploration and development plans for 2011 are fully
funded, and with the strong copper price and commencement of production
scheduled for April 2011, funding for Tiger's longer term development
plans for its exciting projects in the DRC are well on track" Mr
The Kipoi Project covers an area of 55 square kms and is located 75km
north‐north‐west of the city of Lubumbashi in the Katanga Province of
the DRC. The project contains a 12km sequence of mineralised Roan
sediments that host at least five known deposits: Kipoi Central, Kipoi
North, Kileba, Judeira and Kaminafitwe.
The Company has reported JORC standard resources at three of the
deposits. The principle deposit is Kipoi Central which contains a zone
of high grade copper mineralisation within a much larger lower grade
The Company proposes a staged development at the Kipoi Project. The high
grade zone of mineralisation at Kipoi Central is proposed to be
exploited during the Stage 1 development. During the three year life of
Stage 1 a total of 900,000tpa of 7% Cu is planned to be processed
through an HMS plant to produce the equivalent of 35,000tpa of copper.
The Company is currently undertaking a feasibility study to evaluate the
economic viability of constructing an SXEW plant (Stage 2) targeted to
come on stream within three years of the start of the HMS operation. It
is envisaged that ore from Kipoi Central, Kipoi North and Kileba South
and the other deposits within the Kipoi Project and within the nearby
Lupoto Project would be processed at the Stage 2 phase.
Company website: www.tigerresources.com.au
Caution Regarding Forward Looking Statements: The forward-looking
statements made in this news release are based on assumptions and
judgments of management regarding future events and results. Such
forward-looking statements involve known and unknown risks,
uncertainties, and other factors which may cause the actual results,
performance or achievements of the Company to be materially different
from any anticipated future results, performance or achievements
expressed or implied by such forward-looking statements. Such factors
include, among others, the actual market prices of copper, cobalt and
silver, the actual results of current exploration, the actual results
of future mining, processing and development activities, changes in
project parameters as plans continue to be evaluated, as well as those
factors disclosed in the Company's filed documents.
SOURCE Tiger Resources Limited
For further information:
For further information in respect of the Company's activities, please contact: