Greatland Gold PLC (LON:GGP) shot up nearly 52% as it revealed resource investor Metal Tiger plc (LON:MTR) is poised to take a stake.
Metal Tiger is to put in £150,000 to acquire 150 million shares in Australia- focused Greatland at 0.10p a share, equal to around 12.6% of Greatland Gold shares after the placing.
Metal will also receive 150 million warrants at an exercise price of 0.20p each, exercisable at any time within three years.
In a board restructuring, John Watkins has stepped down as non-exec director at Greatland with immediate effect and Metal Tiger chief Paul Johnson and non-exec director Alex Borrelli will join as new directors.
Andrew Bell remains chairman of Greatland Gold and Callum Baxter becomes executive director.
Greatland is well positioned to benefit from a sector recovery in natural resources, reckons Metal Tiger, but needs to be more proactive on the ground and more communicative in the marketplace.
Metal Tiger representative non-executive directors can assist with this, it said.
Metal Tiger chief Paul Johnson, along with his wife, currently have a combined beneficial interest representing 5.48% of the Greatland capital, before the placing.
Therefore, he will not take part in board discussions over this potential investment.
Metal Tiger shares added 12.86% to 5.925p.