Mark Bennett-led S2 Resources has acquired a strategic stake in Northern Territory-focused Todd River Resources in a deal worth about $1.6 million.
Scarborough-based S2 said it had purchased a 19.99 per cent interest in Todd River at an average price of 9 cents per share.
Subiaco-based Todd River owns three projects in the Northern Territory, with a focus on base metals and gold.
As part of the acquisition, S2 managing director Mr Bennett will join Todd River’s board as a non-executive director.
“Under the terms of the TRT placement arrangements, S2 is to have the right to appoint a nominee to the TRT board,” S2 said in a statement to the ASX.
“S2 also has the option to participate in future share issues in TRT so as to be able to maintain its percentage shareholding in the company.
“These rights will continue to apply for so long as S2’s shareholding in TRT is at least 7.5 per cent.”
S2 said it had funded the investment using the proceeds from the sale of its stake in Canada-listed GT Gold.
S2 realised an overall pre-tax profit of $3.4 million on its original $1 million investment in GT Gold.
Scarborough-based S2R, which was spun-out when Independence Group bought Sirius Resources, is focused on exploration projects in Scandinavia and Nevada.
Shares in S2 were off 3.06 per cent at 9.5 cents each at 2.30pm AEDT, while Todd River shares last changed hands at 8.5 cents each.
By Business News
