Polo Resources increases stake in Signet Petroleum

Polo Resources has acquired a further stake in Signet Petroleum following approval from the company's board of directors.

The firm has purchased 850,000 shares in the capital of Signet from additional vendors who have received in aggregate 34m new shares in the capital of Polo for each Signet share acquired by the company.

Polo will own 48.21% of Signet's issued shares with a total of 17,863,093 on completion of the transaction.

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The natural resources investment company holds an option to subscribe to a further 2.225m shares prior to December 31st at $1.25 each and a two-year warrant for over 1.42m new Signet shares at $3.50 each.

Polo said it will be interested in gaining 22,366,665 Signet shares, increasing its stake to 54.9%.

However, the board of directors have agreed to delay exercising the option and warrant until receiving the green light from regulators.

An application has been made for the consideration shares issued to be admitted to trading on the AIM Market of the London Stock Exchange with dealings due to commence on January 4th. There will be 2.69bn ordinary shares in issue following admission.

Polo shares were up 2% to 2.55p at 10:57 Thursday.

RD