LONDON (Alliance News) - Starvest PLC on Friday confirmed it has purchased 50.0 million shares in fellow London-listed Greatland Gold PLC.
Greatland Gold, an explorer and miner in Australia, revealed that Starvest had made the investment on Wednesday as part of a wider transaction.
Starvest was already a shareholder in Greatland Gold, with those new shares pushing its total holding up to 85.3 million shares, representing a 7.2% stake. Notably, Starvest Director Callum Baxter is also a director of Greatland Gold, and one of Starvest's other directors, John Watkins, was also a director of Greatland before he resigned earlier this week.
Starvest acquired the 50.0 million shares for GBP50,000, or 0.10 pence each. Greatland Gold shares were down 12% at 0.15 pence Friday, while Starvest shares were untraded at 1.75p.
Starvest made the investment in Greatland Gold at the same time and at the same price that fellow London-listed investment firm Metal Tiger PLC acquired a 12.6% stake in the gold miner.
Greatland Gold shuffled its board following the investments, leading to Starvest's Watkins stepping down from his role at Greatland Gold. Starvest's Baxter also converted his role as a Greatland Gold non-executive director to an executive role.
Metal Tiger Chief Executive Paul Johnson and Non-Executive Alex Borelli also both became non-executive directors of Greatland Gold, which decided to retain its existing chairman, Andrew Bell.
The new board has plunged into its first task, which will lead to a strategic review of Greatland Gold being launched. That will look at the company's existing exploration interests, existing pipeline opportunities as well as other advanced opportunities that may be suitable.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Greatland Gold (GGP)