28th Mar 2014 16:41
LONDON (Alliance News) - Bellzone Mining PLC Friday admitted it is in talks with one of its major shareholders about getting more equity capital, a move that could lead to a takeover offer being made for the company.
In a statement that was put out after its share price jumped higher, the company said it is in talks with China Sonangol International Singapore Pte Ltd about new equity funding. It said it was putting out the statement without the consent of China Sonangol.
"At this stage there can be no certainty that the preliminary discussions will result in additional equity capital being secured, nor as to the terms on which any proposal might be made or pursued," Bellzone said in a statement.
The company said that CS must either announce an intention to make an offer for Bellzone or say that it does not intend to make an offer by 1700 GMT April 25.
China Sonangol is the company's third-largest shareholder with a 24.61% stake, according to data on MorningStar.
Bellzone said that the discussions were in relation to CS taking a 30% or more stake in Bellzone, and any offer would likely be at a discount to be at a discount to Thursday's closing price of 3.02 pence.
Bellzone Mining shares closed up 42.7% at 4 pence Friday afternoon, the second biggest gainer on AIM.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
Updated by Hana Stewart-Smith
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