Reabold Resources PLC (AIM:RBD) has further increased its stake in LNEnergy, which owns the Colle Santo gas project, with an exercise under its second option, adding 0.8% to its interest.
It sees the company invest £150,000 of cash from existing resources.
As a result, Reabold’s stake in LNEnergy will amount to 18.4% and it retains the right to invest up to a further £1.65 million under its second option, which could give it up to 26.1% of the company.
"We are delighted once again to be able to further increase our interest in LNEnergy, and therefore our exposure to the Colle Santo gas project,” co-chief executive Sachin Oza said in a statement.
“Colle Santo holds significant gas reserves and can be a valuable source of domestic energy supply for Italy.
“We are pleased with the progress that has been made so far, including the recent Letter of Intent signed between LNEnergy and the Italian EPC company to provide vendor financing for the project, thereby substantially reducing the upfront capex for the development.
“We look forward to updating our shareholders as the project progresses."