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Serabi Gold shines as shares leap 30% following Greenstone's Investment
Gold exploration and production company Serabi Gold saw its shares leap by over 30% on Friday as news surfaced of a $15m investment from a private equity firm.
The strategic investment by Greenstone Resources will see it acquire a 29.82% interest in Serabi through a subscription for 297,759,419 new ordinary shares or 0.5 pence each at a price of 3.6 pence per share.
Mark Sawyer, a partner of Greenstone Resources, will immediately join Serabi's board following the investment.
A company statement from Serabi stated that Greenstone's purchase "provides strong endorsement of managements' growth strategy," and provides Serabi with a strong platform to deliver "the company's ambition to become a 100,000 ounce per annum gold producer within two years."
Michael Hodgson, chief executive of Serabi Gold, said: "The new funds generated by their subscription will significantly strengthen Serabi's financial position as the Company looks to expand and develop its Palito, Sao Chico and Coringa projects as well as providing a platform to pursue further regional opportunities."
Aside from these projects, Serabi also has Brazilian resource exploration projects at Jardim do Ouro District and the Tapajos region.
As of 1146 GMT, Serabi Gold's shares were up 33.98% at 4.85p.