#MTR deal coming to a conclusion?

In a recent RNS (see here) Metal Tiger stated that they had been receiving interest from third parties regarding their investment in Botswana.

This is an extract from the RNS.

JV partners continue to receive interest in the Botswanan work from third parties including major mining organisations and investment funds. Recently this has included interest in Metal Tiger’s 30% minority position and the Company continues to liaise with third parties in this regard.

In the next couple of weeks we have these two events happening:

1. Open pit study update

Open pit study has been fast tracked for completion by the end of November rather than the end of December as originally planned.

2. Presentation

MOD Resources are making a presentation in London on the 30th November.

 

Why would MOD fly from Australia to the UK to make a 10 minute presentation?

Is it significant that MOD team are coming to London and trip co-insides with release of open pit study?

Study hasn’t been brought forward so MOD have new information to present. It’s being brought forward IMHO to strengthen JV negotiation armoury.

Joining the dots are MOD atravelling halfway around the world to discuss a possible deal?

Those that follow MTR trading patterns will have noticed that for a few months now, Metal Tiger have a seller, selling batches of shares in 250k lots. Many of these sells are at the beginning or end of the trading day.

Why would anybody sell at these times when on numerous occasions they could have made better returns by selling at other times of the day? It can be concluded that the sales are being made to impact market sentiment and depress the share price rather than to make a financial gain.

Obviously any potential buyer of MTR’s 30% stake would benefit from a depressed share price.

We will soon find out what’s going on. Any buyer is running out of time to make their move as they will want to conclude a deal before MTR release news that potentially impacts positively on the share price.

News could come when least expected or from left field. For example if Kingsgate are successful with the licence renewal for the Chatree gold mine in Thailand this would have a positive impact due to MTR’s Thailand interests (see here).

image

 

It’s only a matter of time IMHO before the MTR business transforms into a business with a much larger market capital.

 

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