30th Apr 2014 09:33
LONDON (Alliance News) - Touchstone Gold Ltd saw its shares jump by nearly a third Wednesday after it said it has already been approached by a number of technology companies that might be suitable for a reverse takeover once conversion from a gold exploration company has been approved by its shareholders.
Earlier this month, Touchstone said it would sell all its assets and convert to an investment company. It also cleaned up its balance sheet by raising USD1.7 million in a share placing.
"In the short time since we announced our placement and intended investment policy, we have been approached by a number of companies in known high growth technology sectors that are ready for a public listing, and which might be suitable for an RTO once the company has obtained its requisite approvals at the AGM," Chief Operating Officer Franz Forrester said.
"Shareholders will understand that the directors cannot guarantee that the investment policy, should it be accepted by shareholders, will be fulfilled by the acquisition of a technology company but that this is currently the area of particular review," he added.
The company said its directors are reviewing a "small number" of companies outside the natural resources sector, but its investment strategy remit was broad.
The former gold mining company, which hadn't yet earned any revenues, had warned last week that it was facing defaulting on some payments if it couldn't get new funding, and said its focus on gold exploration in Colombia was no longer in the best interests of shareholders. It suspended all exploration activities during 2013 after being hit hard by the fall in the gold price, and had warned in January that its concession contracts may have to be ceded back to the vendors.
In its statement Wednesday, the company said some of the capital it raised in its share placing will be used to settle historic liabilities connected with the operations in Colombia, but it will also be left with a significant proportion of its balance sheet in cash and a minimal overhead base.
Touchstone Gold shares were up 21.3% at 0.364 pence Thursday morning, the biggest gain on AIM.
By Steve McGrath; [email protected]; @SteveMcGrath1
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