Paternoster Resources bits off chunk of Palemos

11th Aug 2016 11:36

(ShareCast News) - Paternoster Resources announced on Thursday that it has acquired 375 million shares in Polemos at a price of 0.04p per share from existing shareholders, for an aggregate consideration of £0.15m.The AIM-traded company said this represents a shareholding in the company of 24.6%.It said the consideration of £0.15m will be satisfied by the issue of 93,750,000 new ordinary shares in Paternoster."This investment provides Paternoster with a significant interest in an AIM listed company with a cash balance at an attractive valuation," said Paternoster chairman Nicholas Lee.Based on the balance sheet as at 31 December and the proceeds from two placings that took place during 2016, Polemos is estimated to have cash or cash equivalents of around £0.4m.The current market capitalisation of the company is £0.61m, Paternoster reported.Polemos is an investment company with an investment strategy which, in particular, includes a focus on the natural resources sector.For the year ended 31 December 2015, the company reported a loss before taxation from continuing operations of £0.149m.