Investment company Zeta Resources has announced it is to purchase Axelrock, a move that will sizeably increase its stake in three of holding company Axelrock’s subsidiaries: GME Resources (nickel-cobalt), Alliance Mining (gold and base metals) and Seacrest LP (oil and gas).
Zeta is spending $50 million in the form of 110.8 million company shares to purchase Axelrock, which increases its ownership of GME, AMC and Seacrest from 10 per cent to 44 per cent, 1 per cent to 28 per cent and 25 percent to 41 per cent respectively. GME is the only company of the three to be currently listed on the ASX; its NiWest project in the North Eastern Goldfields is one of the largest undeveloped nickel-cobalt mines in Australia, while Alliance Mining currently operates a large bauxite project in Guinea.
Zeta chairman Peter Sullivan commented on the acquisition, “This value-accretive transaction delivers a substantial boost to Zeta’s prospects, consolidating its position in three attractive resource plays.”
The acquisition is expected to occur by June 2018.