Alecto Minerals PLC (LON:ALO) is to lose its AIM listing due to the prolonged suspension of its shares while the proposed acquisition of the Mowana copper mine in Botswana progresses.
Shares in Alecto have been suspended since 21 December 2016 while it completes the admission document for the deal, which has been structured as reverse takeover.
Under AIM rules, six months is the maximum a company’s shares can be suspended.
Alecto has been granted one extension already, but has now been informed its listing will be cancelled on 11 July.
The junior added it still intends to proceed with the acquisition and to seek admission to trading for the enlarged group on AIM as a new applicant.
Extensive technical, financial and legal due diligence on Mowana and its holding companies has been carried out the results of which will be reflected in the admission document as appropriate.
Indeed, Alecto re-started production at Mowana in March and to date approximately 4,300 tonnes of copper concentrate have been produced and sold to offtake partner, Fujax Minerals and Energy.
However, Alecto warned that in the event the event that the Mowana acquisition does not complete on the expected timetable, more funds will be required without which it faces liquidation.