Tiger Resources secures funding package with Trafigura November 11, 2009

Tiger Resources Limited (ASX / TSX: TGS) has entered into a conditional agreement with Trafigura Beheer BV (“Trafigura”) for a combined equity and debt financing package for a total of approximately US$33.9 million.

The funds will be used to complete Tiger’s payment obligations to acquire its 60% interest in the Kipoi Project (copper, Democratic Republic of Congo), to meet additional funding requirements for the Stage 1 development at Kipoi, to fund the follow up drilling programme at Tiger’s wholly owned, highly prospective Sase prospect and for working capital and general corporate purposes.

Highlights:

• US$33.9 million (approximate) financing package from Trafigura, comprising:
  • Placement of 50 million shares at an issue price of A$0.15 for proceeds of A$7,500,000 (approximately US$6.9 million).
  • Loan note debt facility for US$12 million.
  • Subordinated debt facility for US$15 million.
• Financing package will secure Tiger’s ability to meet payment obligations to acquire its 60% interest in the Kipoi Project and together with the Nedbank proposed senior debt facility will provide funds to bring the US$30 million Stage 1 copper mining operation at Kipoi into production.
• The financing package keeps Tiger’s objective of taking Stage 1 development into production by mid 2010 firmly on track.
• Trafigura is one of the world’s largest independent commodities trading companies, employing over 1,900 people in 42 countries, and with annual turnover (as at September 2008) of over US$70 billion. Trafigura has extensive experience of operating in the DRC.
• Tiger has also reached agreement for the acquisition of the outstanding 15% interest in Tiger Congo sprl from Groupe Orgaman for US$3 million in cash.

Click here to view the full announcement.

For further information, please contact:

David Young
Managing Director
Tel: (+61 8) 9240 1933
Email: dyoung@tigerez.com

Reg Gillard
Chairman
Tel: (+61 8) 9240 1933
Email: gillardr@tigerez.com.au

Patrick Flint
Director
Tel: (+61 2) 9212 7999
Email: pflint@tigerez.com