Alecto Minerals, the AIM listed resource investment company focused on Africa, has acquired Tanzanian mining company Rift Valley Resources, for an initial consideration of £409,200.
The acquisition gives Alecto control of a three year exploration licence covering the 945.5 square kilometres (sq km) Waya Boda gold and emerald licence in the prospective central-southern Adola green stone belt in southern Ethiopia.
Alecto will pay £158,400 in cash plus Alecto shares to the value of £250,800 for Rift Valley.
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Should Alecto decide to continue to fund the Waya Boda exploration programme and commitment beyond 1 July 2012, the company will pay an additional £250,800 to be satisfied by the further allotment of new ordinary shares in Alecto. Should Alecto decide not to continue funding the exploration on the licence on or before 1 July 2012 then it will transfer 51% of the issued share capital of Rift Valley back to the sellers at a nominal consideration of £1 (in aggregate).
The acquisition bolsters Alecto's presence in Ethiopia, where the company already holds a 1,953 sq km gold exploration licence in the Aysid-Metekel region in the north-west.
Alecto Managing Director Damian Conboy said: "Waya Boda is a highly exciting gold and emerald exploration opportunity in the central-southern Adola green stone belt in southern Ethiopia, a region known to host significant deposits.
"This acquisition, our second in Ethiopia, is in line with our strategy to build a substantial African focused multi-commodity exploration company with a highly prospective portfolio of assets."
The firm also said it has terminated its agreement to acquire an exploration licence in the Ashanti Gold Belt project in Ghana, due to the failure by the vendor to meet the conditions precedent.
The share price rose 25% to 1.88p by 13:04.
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