Investment and placing
Paternoster is pleased to announce the purchase of US$495,365 (£325,000) of convertible loan stock ("CULS") in Alecto Minerals plc ("Alecto") in exchange for the issue of 100,000,000 new ordinary shares in Paternoster (the "Investment Shares"). The CULS are being purchased from C3W Limited, which is involved in the provision of contract mining and related services in Africa. C3W Limited is a major shareholder in Alecto by virtue of its recent sale of the Matala and Dunrobin gold mines to the company. These mines are in Zambia and have, in aggregate, 760,000 oz Au JORC code compliant resource estimate in the Measured, Indicated and Inferred categories at an average grade of 2.3g/t Au. Over US$20 million has been invested to date in these mines, principally on drilling and test work.
Alecto, which is listed on AIM, is an Africa-focused exploration and development company involved in gold and base metals. In particular, it has gold and copper interests in four countries in Africa and six projects covering exploration to near term production. In the six months to 30 June 2015, Alecto reported a loss before taxation of approximately £264,000.