LONDON (Alliance News) - Metal Tiger PLC on Thursday said its standstill agreement with the owners of the Boh Yai and Song To mines in western Thailand has been extended, to give it more time to identify an optimal route to undertake mine permitting and planning for production at the sites to be restarted.
Metal Tiger said the standstill agreement between its 90%-owned subsidiary, Southeast Asia Exploration & Mining Co Ltd, and the owners of the two silver, lead and zinc mines has been extended until August 20, to give it more time to finalise its collaborative work regarding the sites. The standstill agreement had previously been due to expire in the middle of June.
Metal Tiger is looking to establish a formal joint venture agreement with the owners of the two silver, lead and zinc mines, and said the extension will allow it to "ensure that we adopt an optimal corporate structure post agreement".
Metal Tiger is currently undertaking extensive discussions with the existing owners to identify the optimal route to undertake mine permitting, rehabilitation and planning for re-commencement of production and the formulation of a commercial agreement, it said.
The company noted that until a deal is signed and announced, there can be no certainty a transaction will be finalised, but said, reflecting the progress achieved to date, and with the support of all parties, initial preparatory work for the mine permitting process will now commence.
?We are pleased to confirm continuing progress with our work in Thailand. To date we have been impressed with the professionalism and diligence of the mine owners to secure a fair and reasonable commercial agreement. We look forward to finalisation of the corporate structure in the near term and reporting back to market on the pathway to re-commence production," said Chief Executive Paul Johnson.
Shares in Metal Tiger were down 2.2% at 3.20 pence on Thursday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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