Advertisement

Alecto Minerals forms strategic alliance with Centamin

Alecto Minerals has formed a strategic alliance with Centamin to pursue gold projects in Ethiopia.

Alecto Minerals has formed a strategic alliance with Centamin to pursue gold projects in Ethiopia.

The two have entered into a non-binding heads of terms agreement for a proposed joint venture for opportunities within the Federal Democratic Republic of Ethiopia.

Alecto owns gold projects Wayu Boda and Aysid Metekel in Ethopia.

Advertisement - Article continues below

Following a joint venture agreement, Centamin will inject an initial $1.8m over the initial expenditure commitment and a further $6.0m if they elect to implement the second expenditure commitment in order to earn a 51% and 70% interest respectively.

Centamin will invest £0.25m in Alecto by way of a share subscription at a price per share of 1.6p, a 74% premium to the share price at close of business Tuesday.

"This is a potentially transformative deal for Alecto that endorses the work we have completed and the quality of our portfolio in Ethiopia," said Alecto's Managing Director, Damian Conboy.

"If the joint venture agreement is signed, with Centamin's investment and technical input, we believe we can rapidly advance the Wayu Boda gold project, and potentially our Aysid Metekel Project, to create value for our shareholders. We look forward to working with Centamin to explore our land package in Ethiopia and potentially develop further interesting projects."

Shares in Alecto rose 23.68% to 1.18p at 09:57 Wednesday while Centamin increased 0.44% to 38.73p.

RD

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

An economics lesson from my barber
Inflation

An economics lesson from my barber

On reopening his shop after lockdown, Dominic Frisby’s barber doubled his prices. It’s all part of the post-Covid inflation process – and we’re going …
8 Jul 2020
Can Rishi Sunak save the economy with stamp duty cuts and half-price meal deals?
UK Economy

Can Rishi Sunak save the economy with stamp duty cuts and half-price meal deals?

John Stepek runs his eye over the chancellor's £30bn stimulus package and asks if it's enough to get the economy back on its feet after months of lock…
9 Jul 2020
A first-half home run for investment trusts
Sponsored

A first-half home run for investment trusts

The investment trust sector has seen some extraordinary performance in the first half of this year. Max King looks at what's behind it, and asks: is i…
7 Jul 2020