23rd Sep 2013 12:39
LONDON (Alliance News) - Alecto Minerals PLC Monday said it has signed a previously announced lock-in agreement with Electrum Group regarding Alecto's acquisition of Electrum's subsidiary AME West Africa Ltd.
The AIM listed, commodity exploration and development company, with operations in Ethiopia and Mauritania, said Electrum is due to receive GBP1.25 million in cash from Alecto in January 2014, and will be provided a further GBP1.25 million in cash or Alecto shares in the event of Alecto achieving a resource reserve of 500,000 ounces of gold at AME West Africa's Kossanto Gold Project in Mali.
Alecto said that under the terms of the agreement, Electrum has agreed that any shares in Alecto received from the deal, shall be locked-in for a period of 12 months following issue.
Alecto's shares jumped up 107% on Friday as it entered into a joint venture with Centamin PLC for two Alecto operations in Ethiopia. Alecto shares Monday were down 21% to 1.87 pence Monday, putting it among the top-five AIM losers.
By Tom McIvor; [email protected]; @TomMcIvor1
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