Nova Resources' stock soars on energy investment in Korea

The share price of AIM-listed Nova Resources more than doubled on Monday after the investment company bought a 24 per cent stake in energy plant operator Enerstry Korea.Enerstry Korea builds, owns and manages renewable energy plants that generate electricity and/or heat energy. The company currently has a 10-year agreement with Yonsei Milk, the seventh-largest milk company in the Republic of Korea."Nova's board of directors believes that Enerstry Korea has reasonable prospects of growing rapidly," Nova said in a statement.Nova has paid just £806 for a 23.72% stake in parent company Enersty Group (EG) which owns 93.33% of Enerstry Korea, buying up 80.6m shares at 0.001p each.However, Nova will also provide an unsecured loan of $0.806m to EG and place two of its board members on the EG board.The deal took place alongside a syndicate of other investors, which have together loaned EG $1.7m, alongside £3,750 of cash from new equity subscriptions.Nova's share price was trading at 1.99p just after midday on Monday, up 104% on the day.BC