Fast growing resources investor Metal Tiger (LON:MTR) has increased its stake in junior gold explorer Goldstone Resources (LON:GRL).
In partnership with Red Rock Resources (LON:RRR), another AIM–quoted mining group, Metal Tiger is acquiring the 19.3% stake from Aussie miner and long-term GoldStone investor Unity Mining.
The consideration is £225,000, split equally between the AIM companies, with Metal Tiger paying in cash and Red Rock in new shares.
Goldstone’s main asset is a controlling interest in the Homase/Akrokerri project in the Ashanti Gold Belt in Ghana, which has a JORC Mineral Resource of 602,000 oz of gold at 1.77 g/t.
Paul Johnson, Metal Tiger’s chief executive, took no part in the acquisition discussions as he was already a holder of shares in Goldstone.
Terry Grammer, Metal Tiger's chairman, said it was pleased to taking a stake in another UK-listed operating resource company.
“Metal Tiger continues to build its investment in low valuation clean operating vehicles and anticipates further transactions of this nature will be undertaken in the near future.”
After this transaction, Metal Tiger will have a 13.26% stake including shares it bought previously while Red Rock will own 9.65%.
Another AIM-listed junior Stratex International (LON:STI) owns a 33.45% stake in Goldstone and recently provided it with a short-term loan of US$100,000.
Shares in Goldstone jumped 67% to 2.75p. Metal Tiger rose 2% to 4.6p, Red Rock rose 11% to 0.53p and Stratex 20% to 2.46p.