Strategic Minerals (LON:SML) rose over 11%as mining giant Glencore (LON:GLEN) sold 45mln shares, its entire holding in the resources group.
The shares were sold at 0.17p per share through a transaction arranged by Optiva Securities.
Glencore acquired the stake when Strategic Mineral’s main focus was iron ore extracted from tailings, but it has since stitched its focus to coal in New Zealand.
John Peters, Strategic Minerals' managing director, said the iron ore division of Glencore held the stake and Strategic Minerals' recent diversification into coal has made this a non-core asset for the mining giant.
“Glencore has been a strong supporter of the company and we continue to have a relationship with them that we expect will be re-activated should it again become economically viable to export from the Cobre mine.”
One shareholder, fund manager Peter Wale increased his stake by 12.57mln shares to 40.4mln or 4.54% of the firm.
Strategic Minerals rose 0.035p to 0.345p.