News Column

Mentum Shares Plunge As It Provides Details Of Reverse Takeover

June 18, 2014

Rowena Harris-Doughty



LONDON (Alliance News) - Mentum Inc Wednesday confirmed it will acquire the mineral exploration and development operations of Robust Resources Ltd in the Kyrgyz Republic for a total of GBP27 million in Mentum shares, resulting in a reverse takeover of AIM-listed Mentum.


Mentum Inc shares were restored to trading on AIM Wednesday, after the company's had been suspended in April awaiting details of the proposed acquisition. Mentum shares were down 39% at 0.500 pence Wednesday morning.


The company entered into a memorandum of understanding with Robust Resources in February over the acquisition of mineral exploration and development operations in the Kyrgyz Republic in exchange for GBP27.0 million worth of Mentum shares in a reverse takeover. In January the company raised GBP375,000 before expenses to meet the costs of the potential takeover.


The Robust Resources acquisition also comes with GBP3.5 million in cash and a fleet of mining and construction equipment.


Mentum said Wednesday that it is proposing to undertake a 1 for 50 share consolidation to consolidate the company's existing ordinary shares of 0.1 penny each into new ordinary shares of 5 pence each.


Following the reverse takeover, Mentum said it will change its name to Tengri Resources.


Last year, the company's shareholders approved a new investing policy of acquiring securities or assets in UK-listed companies with a focus on natural resources, primarily the oil and gas sector. Mentum was formerly known at Commoditrade Inc, when it was a metal and energy brokerage and commodity trading company.


The acquisition of Robust Resources marks Mentum's first major asset acquisition, the company said, giving it exposure to large-scale gold and copper mining development and exploration operations in a region widely recognised for its mineral prospectivity.


"The enlarged group will have sufficient cash resources to fund the immediate stages of development, including a revised definitive feasibility study, governmental and community engagement at Andash in order to lift the force majeure status, and exploration activities at Taldybulak and Bashkol," said Mentum Chairman Peter Moss in a statement.







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Source: Alliance News


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