Mentum plunges as trading resumes

18th Jun 2014 14:19

Shares in AIM-listed Mentum plunged on Wednesday following the restoration of the trading of its shares, which came as the group proposed a name change, a one-for-50 share consolidation, and its first major acquisition. Mentum has proposed the acquisition of gold and copper mining assets in Kyrgyzstan of Robust Resources, for which Mentum is planning to pay a total of £27m that it will raise through a fundraising. It would be the company's first major asset acquisition.The purchase would give it exposure to large-scale gold and copper mining development and exploration operations in a region widely recognised for its mineral prospectivity. The acquisition comprises three licence areas in addition to a fleet of mining and construction equipment. Chairman Peter Moss said: "The board are pleased to announce that the company has been able to advance its plan to acquire what it believes to be a high quality portfolio of development and exploration stage projects in the Kyrgyz Republic. We can now look forward to the new proposed management team carefully advancing the projects. "The enlarged group will have sufficient cash resources to fund the immediate stages of development, including a revised definitive feasibility study, governmental and community engagement at Andash in order to lift the force majeure status, and exploration activities at Taldybulak and Bashkol." The group is also planning to change its name to Tengri Resources. Shares in the group had plummeted 42.42% to 0.475p by 14:26. NR