Metal Tiger weighs funding options for Sandfire buy

28th September 2021 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH ( – ASX- and Aim-listed Metal Tiger on Tuesday said it was exploring financing options to fund a A$17.8-million investment in copper miner Sandfire Resources.

Sandfire this week completed the institutional placement and the institutional component of its entitlement offer, as part of a greater A$1.2-billion capital raise.

The institutional placement raised some A$285-million, while the institutional component of the entitlement offer will raise A$641-million.

Tiger Metals said on Tuesday that it had opted to take up its rights for more than 3.3-million shares in Sandfire, for an investment of some A$17.8-million, with settlement of the shares to occur on October 4.

The company is now exploring "several options" to finance the investment, including a new margin loan facility or the existing equity derivative financing agreement with a global investment bank.

Metal Tiger currently holds a 3.4% interest in Sandfire.

Sandfire is raising cash to fund A$2.57-billion purchase of the Matsa mining complex, in Spain.