LONDON (Alliance News) - Mineral & Financial Investments Ltd Thursday said it has bought a 49% stake in Swiss-based TH Crestgate GmbH for GBP82,000.
Shares in Mineral & Financial were trading up 58% at 9.70 pence Thursday afternoon following the news.
The investment company said it will invest a further GBP66,000 in the company through the issue of TH Crestgate treasury shares, while the current owners of TH Crestgate, listed as Mr R Maurer and Mr F Moppert, also will purchase GBP69,000 worth to maintain its 51% interest.
TH Crestgate's main assets are the Lagoa Salgada Portuguese zinc and lead project located in the Iberian pyrite belt and the Toral project located in Castille and Leon province of Spain. It currently generates a nominal profit and the book value of its assets is GBP43,000, according to Mineral & Financial.
Mineral & Financial said the acquisition is part of its strategy to invest in and finance mineral assets with resources.
"We are delighted to be able to participate in this opportunity to realise value from what, we believe, are very attractive lead and zinc properties in Europe. We have stated our belief that the zinc market offers opportunities for increasing shareholder value as supply is becoming increasingly constrained by a lack of exploration and development, coupled with significant mine closures," Chairman Jacques Vaillancourt said in a statement.
"The current market pressures from China's slowed growth, are creating a near cycle low investment opportunity. To be able to take a meaningful position in a European country with full and excellent infrastructure at the project's doorstep should allow us to significantly increase the geological wealth in place at both Toral and Lagoa Salgada. We look forward to working closely with TH Crestgate to further the development of this asset," Vaillancourt added.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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Mineral & Fin (MAFL)