Natural resources firm Metal Tiger has announced it is terminating the acquisition and joint venture agreement entered into with Kanchanaburi Exploration and Mining Company, Boh Yai Mining Company and the majority owner of both companies, Pornnaret Klipbua.
The agreement was entered into in August 2016.
Metal Tiger has been in active discussions with regard to renegotiating the terms of the agreement, with a view to farming into BYMC in order to facilitate the joint venture to run an exploration drill campaign at Boh Yai lead-zinc-silver mine.
The company's understanding from its joint venture partner, was that Mr Klipbua and his team had found a viable option that was compliant with the permitting framework under Thai law, in order to allow for the implementation of exploration/resource drilling at the mine site.
Metal Tiger's negotiating position was to farm-in for 49% of the project for a commitment to undertake an aggressive two-year drill campaign without any payments to the joint venture partner.
Unfortunately, Metal Tiger was unable to reach terms with Mr Klipbua to accept a deal without an upfront payment.
The company said that in light of this, as well as the prevailing macro-economic environment, the 'risk-reward ratio was not acceptable to Metal Tiger'.
Michael McNeilly, chief executive officer of Metal Tiger, said: 'Clearly we are disappointed that we were unable to agree acceptable terms given the amount of work undertaken to demonstrate the investment case. With that said, Metal Tiger must look towards the future and take an optimised and moderated risk approach in the balancing of its allocation of funding.'
At 9:21am: (LON:MTR) Metal Tiger Plc Ord 0.01p share price was -0.05p at 1.2p