21 Jul 2010 10:45
Alecto Energy plc / EPIC: ALO / Market: AIM / Sector: General Financial
21 July 2010
Alecto Energy plc ('Alecto' or 'the Company')
Update
Alecto Energy plc, the AIM listed resource investment company, announces that, following the completion of a detailed technical review by SRK Exploration Services ('SRK') and the Company's geological team, the Board has decided to convert the loan to Bulgarian Mining Corporation Ltd ('BMC') into a 20% equity position in BMC.
The evaluation by SRK was part of the Company's on-going strategy of assessing investment opportunities in the resource and energy sectors to identify projects that fit Alecto's stringent investment criteria. In line with this strategy the Directors continue to actively review a number of opportunities in Africa, with a particular focus on Mauritania, where they are currently evaluating a number of highly prospective gold projects.
Further to the announcement made on 27 January 2010 regarding the agreement to provide BMC with a 90 day working capital facility of £45,000 ('the Loan'), the Directors have agreed with BMC that the Loan will be converted into an equity interest which will represent a 20% shareholding in BMC with no obligations.
Alecto Executive Director Damian Conboy said, "The Board has decided to take an equity position in BMC and to concentrate on other opportunities currently under evaluation, which the Board sees as having greater potential for value uplift in the near to medium term. Our management team remains highly focussed, and is centred on creating shareholder value through strategic investments in the resource and energy sectors, and with this in mind we are assessing a range of potential opportunities. In particular, we are evaluating a number of gold opportunities in Mauritania in West Africa, which we believe have the potential to deliver considerable value to Alecto. This evaluation process is ongoing and we will update the market as the evaluation process continues."
**ENDS**
For further information, please visit www.alectoenergy.com or contact:
| Damian Conboy | Alecto Energy plc | Tel: 020 3006 0260 |
| Greg Kuenzel | Alecto Energy plc | Tel: 020 3328 5670 |
| Nick Naylor | Allenby Capital Ltd | Tel: 020 3328 5656 |
| Alex Price | Allenby Capital Ltd | Tel: 020 3328 5656 |
| Hugo de Salis | St Brides Media & Finance Ltd | Tel: 020 7236 1177 |
| Elisabeth Cowell | St Brides Media & Finance Ltd | Tel: 020 7236 1177 |