Baobab Resources warrants exercised by investor

Redbird Investments, an investment vehicle of African Mineral Exploration and Development, has increased its stake in Mozambican-focused explorer Baobab Resources.

The investor exercised its 25m warrants at a price of 12p per share, bringing its total investment in Baobab up to £7.0m.

Baobab also announced the appointment of Carlo Baravalle as a Non-Executive Director to the company.

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"We are delighted to welcome Carlo to the board and his considerable experience in senior roles within international corporations together with his expertise in raising funds in international markets will be of great benefit in the future," Baobab's Chairman, Jeremy Dowler, said.

"The funds raised through this exercise of warrants ahead of the expiry date is a further vote of confidence in the company and will greatly assist in the final planning of the definitive feasibility study. This will commence immediately after the publication of the pre-feasibility study which is now due for release in the second half of February."

Baobab's shares were trading down 7.41% to 28.12p at 13:38 Wednesday.

RD