30 Jun 2010 07:05
Alecto Energy plc / EPIC: ALO / Market: AIM / Sector: General Financial
Alecto Energy plc ('Alecto' or 'the Company')
Investment in Charles Street Capital plc
Alecto Energy plc, the AIM listed resource investment company, is pleased to announce that it has taken a 9.73% shareholding in AIM listed Charles Street Capital plc ('CSC') as part of Alecto's strategy of building a portfolio of resource projects and investments in the natural resource sector.
Alecto's £100,000 investment in CSC comprises 100,000,000ordinary shares in CSC at a price of 0.1 pence per share (the 'Placing Shares') plus warrants to subscribe for a further 50,000,000 new shares in CSC, exercisable at 0.25p per share for a period of two years from the date of admission of the Placing Shares to trading on AIM. This investment forms part of a share placing carried out by CSC and announced today, which raised circa £805,000 (before expenses) to invest in natural resource, mineral, metal and oil & gas companies. CSC is focused initially on mining and resource opportunities in Africa, South America, Australasia and Central and Eastern Europe.
Alecto Executive Director Damian Conboy said, "We believe our investment in CSC will provide Alecto with exposure to an array of potential investments in the resources sector, with high upside potential. We have an active investment strategy and believe that by taking a position in CSC we can leverage our funds and reduce our project risk profile. We are already evaluating a number of opportunities, the most advanced being the agreement with Bulgarian Mining Corporation Ltd ("BMC") as announced on 29 April 2010 and in that regard SRK Exploration Services are currently completing an assessment on BMC's uranium licences, which the Board believes have the potential to provide the Company with low entry cost access to high grade uranium assets in a stable political jurisdiction."
As a condition of this investment, Alecto has agreed with CSC that Damian Conboy will join the management team to assist the company during its development phase. Greg Kuenzel, Alecto's Company Secretary, will join the board of CSC as a Non-Executive Director.
**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 |
ALO.L (ALO)