Chinese firm buys stake in A-Cap

In a statement released on Tuesday, A-Cap announced that Hong Kong investment company, China Growth Minerals Limited (CGM), had acquired an initial 13 million shares or 8.11 percent of the issued capital of A-Cap from Polo Resources plc for 38.5 cents per share.A-Cap is currently exploring for uranium in Letlhakane and Serule, and the results have been encouraging so far.Under the agreement, CGM also has an option to acquire a further 13 million shares within six months. The Chinese company will have the option to buy another 13 million shares at the price of a 15-day Volume-Weighted Average Price (VWAP) or they will have to buy at 40 cents per share.

Earlier this year, coal miner Polo Resources bought a 19.9-percent stake in A-Cap Resources for $4.74 million (P32 million) for the latter to expand its uranium interests. The purchase was part of a placement by A-Cap of 50 million new shares at 20 Australian cents apiece to raise A$10 million.