Ennex International, the exploration company, has agreed to exercise its option to buy a 95 per cent stake in a 4 million tonne zinc project in Shaimarden, Kazakstan.
The price is 30 million new Ennex shares with a market value of £10.5 million and the sellers, a group of investors, will also receive warrants to subscribe for 15 million ordinary Ennex shares at 30p each, a discount of around 5p on the last London price.
If exercised, the warrants would bring an extra £4.5 million into the company. The new investors could control up to 23 per cent of the enlarged equity. However, Mr Christian Schaffalitzky, managing director of Ennex, said no single investor will have more than 3 per cent of Ennex. Ennex has the right to reduce the consideration by 25 per cent on the payment of $2.5 million. "This is a very positive development for shareholders," he said. Interim results, also released yesterday, show a rise in losses from $46,000 (£31,080) to $617,000. This, however, includes a $600,000 write-down in the value of shares in Caldedonia Mining which are now carried at $500,000. Cash resources total $5,672,000.
