Paternoster Resources PLC Investment in Ortac Resources Limited (9870K)

TIDMPRS

RNS Number : 9870K

Paternoster Resources PLC

27 September 2016

Paternoster Resources plc

("Paternoster" or the "Company")

Investment in Ortac Resources Limited ("Ortac")

Paternoster is pleased to announce that it has subscribed for new ordinary shares in Ortac Resources Limited at a price of 0.025 pence per share as part of the company's recent placings. Paternoster has invested GBP210,000 in cash, following which the Company will hold 840,000,000 shares in Ortac, representing 11.7 % of the company. At the same time, Paternoster has sold to Ortac its entire existing shareholding of 640,000 shares in Andiamo Exploration Limited ("Andiamo") for GBP50,000 in cash.

Ortac is listed on AIM and is an exploration and development company focused on natural resources projects. It has four principal assets:

   -           Sturec, which comprises a 1.32 million ounce gold project in Slovakia. 

- a 27% shareholding in Andiamo (including the purchase of Paternoster's shareholding), a private company with high-grade gold-copper exploration projects in Eritrea.

- an investment of $US 1.2 million in Zamsort Limited via convertible loan notes which, if converted, would provide the company with a 19.35% stake in Zamsort

- a 13% holding in CASA Mining Limited ("CASA"), a private company with gold assets in the Democratic Republic of Congo. CASA has an initial inferred resource of 1.2 million oz @1.7 g/t Au at its Akyanga deposit. A recent scoping study demonstrates the potential viability to produce a 100,000 oz gold per year.

Nicholas Lee, Chairman, said:

"We believe that Ortac has an interesting and attractively valued portfolio of assets with potential and so we are pleased to be taking a strategic position in the company. This transaction also enables us to convert our unlisted Andiamo investment into a listed investment and for this holding to be consolidated with Ortac's much more significant position."

For more information please contact:

 
 Paternoster Resources plc: 
 Nicholas Lee, Chairman                 [phone] 
 Nominated Advisor and Joint Broker: 
 Stockdale Securities 
 Antonio Bossi/David Coaten               [phone] 
 Joint Broker: 
 Peterhouse Corporate Finance 
 Lucy Williams                          [phone] 
 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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September 27, 2016 10:38 ET (14:38 GMT)