Paternoster Resources subscribes for Glenwick shares

Shares in Paternoster Resources are down 5% after it subscribed for £130,000 worth of new shares in Glenwick Plc at 0.05p each, providing the latter with funds for general working capital and to progress its proposed buy of Cora Gold Ltd.

Glenwick said earlier today it had entered into a non-binding heads of terms to acquire 100% of the share capital of Cora Gold, which would constitute a reverse takeover under AIM rules.

Cora Gold was established in 2016 by Hummingbird Resources and Kola Gold Ltd to consolidate certain of the former company's non-core gold exploration permits in Mali, together with Kola's permits in Mali and Senegal (Gold Portfolio).

The Gold Portfolio comprised 10 highly prospective gold exploration properties covering more than 1,600 sq km and located in two significant gold areas, the Kenieba Window in Mali and Senegal and the Yanfolila Gold Belt in Mali.

Currently, Glenwick's principal investment comprised £1.1m of pre-IPO convertible loan notes in i3 Energy Ltd, an oil and gas company that is in the process of completing an IPO.

i3 has just acquired a 100% operated interest in the Liberator field, an oil discovery situated within Block 13/23d of the North Sea, immediately adjacent to the Blake field and situated 2 km from Blake's producing drill centre.

"It is expected that once the IPO of i3 is complete, the convertible loan note will be converted and shares in i3 will be passed through to the shareholders of Glenwick," said Paternoster in a statement.

Paternoster would get a pro-rata entitlement to the i3 shares on distribution to Glenwick shareholders.

The conversion price was expected be set at a 50% discount to the price at which any new shares in i3 were subscribed for by investors at the time of the IPO.

At 14:32 GMT, shares in AIM-quoted Paternoster were down 5% to 0.19p each.