Metal Tiger will fund a further US$50,000 of exploration costs in addition to US$50,000 already spent and work alongside Eurasia thereafter.
Metal Tiger plc has received £269,000 in additional funds from warrant exercises over the past two days.
The warrants had been issued at prices of 1.6p and 1.8p.
The money will help Metal Tiger pay for the take-up of its option over the Semenovsky gold tailings joint venture in Russia with Eurasia Mining.
Paul Johnson, chief executive, said: ”The project fundamentals, particularly recently updated and announced in February made exercise of this option an obvious commercial decision for the company. “
Under the terms of the option, Metal Tiger will fund a further US$50,000 of exploration costs in addition to US$50,000 already spent and work alongside Eurasia thereafter.
Eurasia so far has spent US$135,000on the project, which in February was estimates to have a net present value of US$23mln.
Its last internal valuation pointed to potential total gross revenue of approximately US$86mln over a 10 year mine life with net project total cash inflow of approximately US$51mln.
Christian Schaffalitzky, Eurasia Mining’s manage director, said: “We are pleased to confirm Metal Tiger’s participation in the Semenovsky Tailings Project.
“The board of Eurasia Mining believe that the project offers a very attractive opportunity to move into production generating revenues and cash inflow, something that investors are increasingly keen to see in the junior mineral equity space.”
Source: Proactive investor