Obtala Resources, a natural resource investment and development company, has agreed to sell 100m of its shares in Bushveld Minerals to Endulwini Mining Corp at 13p each.
The £13m sale is expected to be completed within 45 days once certain conditions have been met, including Endulwini receiving exchange control approval and final approval from its funding partner.
Obtala will retain 30.52m shares in Bushveld, equal to 10.75% of the issued share capital.
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
The proceeds will be escrowed with part of the funds used to grow and develop the agriculture projects in East Africa which is the main strategy of Obtala.
Bushveld generated an operating loss of £1.55m for the half year ended August 31st 2012.
Obtala's share price rose 3.23% to 8.00p by 08:22 Wednesday.
NR
-
Trouble brews in B&M as bargain shops take a hitOpinion Once a stock market darling, B&M's share price has slumped. What has gone wrong for bargain shops?
-
US and China reach a ceasefire in their trade war after talks in LondonThe US and China's trading relationship – the most important one in the global economy – is back on track. Will the truce last?
