Nyota Minerals has conditionally agreed to sell its 70% interest in KEC Exploration (KEC) to Christopher Reindler, its minority shareholder and a director of KEC, or his nominee, subject to the approval of shareholders.
KEC controls the various tenements in Italy that comprise the Ivrea Nickel Project. Following completion of the Disposal, the Company will have no further operating businesses or investments and will be a cash shell under the AIM Rules.
As previously announced, the Ivrea Nickel Project is still at a very early stage and will require substantial capital investment to continue the exploration programme and to develop the tenements, which is not currently available to the Company.
The Board had resolved not to contribute further cash to the expansion of the original tenements and to seek a buyer of the Company’s interest, failing which it would consider relinquishing its interest in the licenses.
Story provided by StockMarketWire.com