Egypt-focused mining company Centamin has increased its stake in AIM-listed Nyota Minerals to further develop the Arabian-Nubian Shield, an area of land that straddles parts of North East Africa and the Middle East.
It includes regions of Egypt, Ethiopia, Eritrea, Sudan and Saudi Arabia and is highly mineralised.
The FTSE 250-listed gold mining company subscribed for 38.5m new ordinary shares for a consideration of £0.8m in the firm placing and a further 42.5m new ordinary shares for a consideration of £0.9m in the conditional placing announced by Nyota on Thursday.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Following the firm placing, Centamin will own 128.5m ordinary shares in Nyota equalling 17% of Nyota's enlarged share capital. Following the conditional placing becoming unconditional in all respects, Centamin will own 171m ordinary shares in Nyota, representing 19.87% of Nyota's enlarged share capital.
Previously, Centamin had been the holder of 90m shares in Nyota via its wholly-owned subsidiary Centamin Holdings.
Centamin's share price was down 2.43% to 54.30p at 11:12 on Thursday. Nyota Minerals' share price was unchanged at 2.20p.
MF
-
How taking a two-year career break could leave a £26k hole in your pensionCareer breaks are increasingly common but it is important to take steps to protect your pension, as gaps compound over time
-
Cash in on your attic: Thousands could be sitting dormant in your storageSelling your valuables at auction could be far more lucrative than you think. We take a look at how auctions work, and some tips to help you maximise your profits
