PERTH (miningweekly.com) – ASX-listed Zeta Resources has executed a binding term sheet that would see it increase its stake in three resource companies.
Zeta on Thursday announced that it would acquire investment holding company Axelrock for 110.8-million shares, at a deemed issue price of 45.2c a share, valuing the transaction at around A$50.1-million.
Axelrock has three investment positions, including in ASX-listed nickel/cobalt explorer GME Resources, bauxite hopeful Alliance Mining Commodities and privately held oil explorer Seacrest, in which Zeta already holds an interest.
As a result of the acquisition, Zeta’s interest in GME will increase from 10% to 44%, while its interest in AMC will increase from 1% to 28%, and in Seacrest from 25% to 41%.
“This value accretive transaction delivers a substantial boost to Zeta’s prospects, considering its position in three attractive resource plays,” said chairperson Peter Sullivan.
The acquisition of Axelrock was subject to a number of conditions, including shareholder and Foreign Investment Review Board approval.