Origo sheds Mongolian exploration stakes

StockMarketWire.com - Private equity investor Origo Partners Plc has unloaded its stakes in Mongolian prospectors Bumbat Consolidated Ltd and Altan Takhi Company.

Origo subscribed for $1m of equity in coal, copper and gold projects developer BCL in June, equivalent to a 11.3% holding. Its interest has been redeemed for $1.2m.

It invested $3m for a 30% stake in copper-gold explorer ATC in November and has sold back the position to the majority shareholder at investment cost.

CEO Chris Rynning said, 'After a review of our evolving Mongolia portfolio of exploration projects, we have come to the conclusion that it is in our interest to divest our holdings in BCL and ATC.

'The divestment will enable us to focus our immediate efforts on our two flagship Mongolian assets, Gobi Coal & Energy Ltd and Kinkora Ltd, as well as the longer term development of Huremtiin Hyar.

'We continue to see a healthy deal flow in Mongolia and remain attracted to those Mongolian resources assets which are set to benefit from growing Chinese demand, with a particular focus on copper-gold and coking coal projects.

'We intend to recycle the proceeds from the sale of our stakes in BCL and ATC into other Mongolian opportunities particularly where we can utilise our established in-country exploration team and influence the development of assets effectively.'

Origo shares were up 0.25p at 41.5p.



Source:StockMarketWire.com