LONDON (Alliance News) - Paternoster Resources PLC, the natural resources investing company, is turning its convertible loan notes in fellow AIM listing, metal explorer and developer Alecto Minerals PLC, into shares, the companies said on Tuesday.
Paternoster is converting the notes into 433.5 million new shares in Alecto at a price of 0.08 pence per share, having acquired them from C3W Ltd in November. The conversion will give Paternoster a 12% stake in Alecto. Shares in Alecto were down 2.2% at 0.11p on Tuesday morning.
"I look forward to having Paternoster as a significant shareholder. They have a strong track record of working, supportively, with successful companies as longer term shareholders," Mark Jones, Alecto's chief executive officer, said in a statement.
Nicholas Lee, the chairman of Paternoster, said Alecto has has been making "excellent progress" with its recent acquisition of the Matala and Dunrobin gold mines in Zambia.
Lee said that "now is a good time to convert our holding of convertible loan notes into equity in order to benefit fully from Alecto's expected progress in the short to medium term as a supportive shareholder".
Shares in Paternoster were up 0.4% at 0.206p on Tuesday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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