Metal Tiger joins Red Rock to buy chunk of Goldstone Resources

Strategic natural resources investor Metal Tiger announced its participation in the acquisition of 12,013,173 shares in Goldstone Resources, in conjunction with Red Rock Resources, at a price of 1.87p per share.

The AIM-traded firm said the acquired shares total 19.29% of the issued share capital of Goldstone Resources, and upon completion Red Rock and Metal Tiger will own 9.645% each.

Metal Tiger already owned 2.25 million shares in Goldstone, and after the acquisition it will own 8,256,586 shares representing 13.26% of Goldstone Resources.

Goldstone is an exploration company with skills that focus on west and central Africa. Its assets include the Homase/Akrokerri project adjoining and to the east and north of AngloGold Ashanti’s Obuasi mine in the Ashanti Gold Belt in Ghana.

The project has a JORC Mineral Resource of 602,000 ounces of gold at 1.77 grams per tonne. Other licences are held in Gabon and Senegal.

Consideration for the joint acquisition is £0.225m, of which £0.1125m is payable in cash by Metal Tiger, with the balance payable by Red Rock.

At close of business on 27 April the price of Goldstone Resources was 1.65p, and its market capitalisation was £1.027m. In the six months to 30 June 2015 it reported pre-tax losses of £813,206 and net assets of £730,423.

"We are pleased to announce the strategic acquisition of shares in another UK listed operating resource company,” said Metal Tiger chairman Terry Grammer.

“Metal Tiger continues to build its investment in low valuation clean operating vehicles and anticipates further transactions of this nature will be undertaken in the near future.”

“The Goldstone Resources interest will be held in the company's Asset Trading division,” Grammer explained.

Metal Tiger chief executive Paul Johnson excluded himself from the decision to proceed with the acquisition, as he is an existing holder of Goldstone Resources shares.