Ortac Resources PLC's (LON:OTC) stake in Eritrean exploration partner Andiamo has been reduced by a funding backed by a venture capital group.
Andiamo raised US$0.5mln in consideration for the termination of its joint venture arrangement with Environminerlas East Africa Limited.
Emerald Ex subscribed for 5mln new shares in Andiamo at US$10c per share, which reduces Ortac’s stake in Andiamo to 18.48%.
Vassilios Carellas, Ortac's chief executive, said: "We welcome this development which enables Andiamo to continue exploration to the South of the very successful Bisha mine and brings a strong private equity group on to the share register.”
Emerald is a subsidiary of NurtureEx, which is funded by African Mineral Exploration and Development (AMED), a private equity group that invests in mineral exploration and development projects predominately in sub-Saharan Africa.
NurtureEx has been involved in Andiamo since early 2014 as an investor in EEAL.
