LONDON (Alliance News) - Polo Resources Ltd Wednesday said it has taken up a placement by Celamin Holdings NL for a 12.7% stake in the company in return for an investment of AUD1.2 million.
The natural resources and mine development investment company said Celamin is an excellent opportunity for it to add a phosphate developer to its overall portfolio of assets.
Celamin is an Australian Stock Exchange-listed company advancing a bankable feasibility study on the Chaketma phosphate project in Tunisia, where drilling to date has intersected thick mineralised zones averaging over 15 metres at favourable depths, with grades that generally exceed 20% phosphorous pentoxide, Polo said.
The news comes a week after Polo announced its pretax loss was cut to USD2.5 million for the six months ended December 31, 2013 from USD8.8 million the previous year, as lower charges and impairments offset lower gains from the sale of investments.
The company also noted that Signet Petroleum Ltd, an independent African oil explorer in which Polo has a 42% equity interest, has implemented a share buyback from which Polo expects to receive a minimum of USD22.8 million free of any taxation liability. The buyback follows Signet's sale of Namibian interests to Shell Exploration and Production, part of Royal Dutch Shell PLC.
Polo Resources shares were up 1.3% to 17.10 pence Wednesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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