Red Leopard's shares soar as it becomes cash shell seeking deals

Shares in Red Leopard are up a staggering 400% after confirming it has become an AIM cash shell seeking deals on deciding to cease funding its zinc and silver project in Idaho.

The company -- whose shares resumed trading on AIM on Tuesday -- also detailed a successful £250,000 subscription with private investor Chris Akers at 0.1p a share.

Akers was expected to assist Red Leopard in identifying investment opportunities. Either he, or a nominee, might join the board in due course.

Red Leopard added that it had appointed Beaumont Cornish Ltd as its nominated advisor and Peterhouse Corporate Finance Ltd as its sole broker, both with immediate effect.

"In conjunction with the subscription, the board has made the decision to cease funding of the company's existing zinc and silver project in Idaho, USA," said Red Leopard.

This decision constituted a cessation of all of the company's existing trading business, and that it was now classified as an AIM cash shell.

It thus had to make an acquisition or acquisitions that constituted a reverse takeover under AIM rules within six months, or face its shares being suspended.

Red Leopard said it would use the subscription's proceeds for general working capital, to satisfy accrued professional advisers fees of roughly £50,000, and to cover the costs of any due diligence fees associated with investment opportunities considered.

"In addition, there are accrued outstanding director fees covering the last 18 months of £133,875 and outstanding loans of £80,000. The directors and loan note holders have agreed for these not to be repaid from this subscription," it added.

At 10:25 GMT, shares in AIM-quoted Red Leopard were up 400% to 0.2p each.