20th Jul 2015 09:20
LONDON (Alliance News) - Strategic Minerals PLC on Monday said Chief Executive John Peters acquired 3 million shares in the company for 0.6 pence per share on Friday.
The purchase pushes Peters' holding in the company to 8.7 million shares, or 0.98% of its issued share capital.
Strategic Minerals shares were up 31% on the news to 0.489 pence.
"I wanted to take part in the recent share placement but was unable to as we were in a close period. My purchase, at significantly above market, reflects my continued confidence in the company, its ability to complete the Tatu project, and the price at which the placing was carried out," said Peters.
Strategic Minerals shares were lifted last week when it said the government of New Zealand has confirmed the ownership of the mining licence for the Tatu coal project has been transferred following the company's recent acquisition of King Country Mining Ltd. At the end of March, Strategic Minerals had reached a deal to acquire a 51% stake in King County, which could eventually rise to 100% if the company exercises an option.
Earlier in the month, Peters had caused concern and confusion among shareholders, only three days after the company appointed its new Chairman Alan Brookes, by releasing a statement that said it was "imperative" to acquire more assets, because the Cobre mine in New Mexico was not sufficient to cover its overheads.
Peters said at the time that while the Cobre mine remained profitable, it was not sufficient to meet its corporate overheads, but then released another statement that said the release had been "misinterpreted".
By Sam Unsted; [email protected]; @SamUAtAlliance
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