Shares in Bluebird Merchant Ventures Ltd flew 19.8% higher to 0.75p following news that existing shareholder Catalyse Capital Ltd will acquire a 17.8% stake currently held by Southern Gold Ltd (ASX:SAU), which it said should eliminate a perceived 'overhang'.
The company noted that Southern Gold had already sold 26 million shares recently as it implements a change in strategy to focus on its battery technologies and minerals exploration in South Korea, rather than gold.
Bluebird chief executive Colin Patterson said: "Catalyse has been a long-standing supporter of Bluebird and we welcome this staged transaction to exit Southern Gold from our register."
He added: "Southern Gold's selling, caused by their strategic shift away from gold and into critical metals, has undoubtedly affected our share price, and to ameliorate the Southern Gold situation is good news."
Catalyse Capital has been an investor in Bluebird Merchant Ventures for the past three years.