Glenwick to buy Cora Gold as it pivots to mining sector

6th Feb 2017 08:13

(ShareCast News) - AIM-listed investment firm Glenwick is to buy explorer Cora Gold for shares equivalent to about 91% of its enlarged share capital, as the company pivots towards the mining sector.The acquisition of Cora Gold, which was established by Hummingbird Resources and Kola Gold in 2016 to amalgamate gold permits in Mali and Senegal, is subject to the completion of technical and legal due diligence by Kola, Hummingbird and Glenwick, and the entering of a legal binding share purchase agreement.Glwnwick's enlarged share capital due to the acquisition is expected to be admitted to trade on AIM the second quarter of 2017.The company also announced that Dr. Jaap Poll has stepped down from Glenwick's board with immediate effect, after joining in last year as its oil and gas sector expert bit as the company is pivoting towards the mining sector, Dr. Poll has decided resign to pursue his other business interests.Amanda van Dyke, director of Glenwick, said: "We are very excited to be working with the experienced Cora Gold management team, given it historic successes in West Africa, as well as the Hummingbird team. The gold portfolio comprises what we believe to be some of the most prospective ground in West Africa and there could be no better team to develop the assets than the one Cora Gold has assembled."The board is thrilled to be able to offer our shareholders access to this opportunity, and will be doing everything in our power to make the transaction a success."Meanwhile, the company said that its pre-IPO investment in i3 Energy is currently seeking admission to AIM and that the i3 shares received by Glenwick following the IPO will be distributed to Glenwick shareholders, excluding new shareholders as part of the acquisition of Cora Gold and a recent share placing.Glenwick raised £130,000 through a placing of 260m shares at a price of 0.05p each from Paternoster Resources, an AIM-quoted investment mining firm, for general working capital.Paternoster will receive an entitlement to i3 shares once they are distributed to Glenwick shareholders for the new shares.