Stratex International plc (LON:STI) has sold its 13.7% stake in Goldstone Resources Limited to institutional investors at a price of 1.6p per share for total cash consideration of £550,000.
Stratex said in a statement that the rationale for holding Goldstone had become less compelling following dilution after a recent capital raise.
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As it no longer has the ability to influence Goldstone’s strategy in a meaningful way, it said, the investment no longer met the company’s “investment criteria.”
The Goldstone investment was equity-accounted with a carrying value of £950,000 as at 30 June 2017.
For the year ended 31 December 2016, Stratex recognised a loss of £790,000 before tax and non-controlling interests in respect of Goldstone's operations. The proceeds of the sale will be used for general corporate purposes.
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In conjunction with the sale, Emma Priestley has resigned as non-executive director of Stratex, since she remains chief executive of Goldstone.