By Benjamin Chiou
Date: Monday 12 Sep 2011
LONDON (ShareCast) - Shares in Leed Petroleum, the AIM-listed natural resources investment company, jumped by 20% on Monday after the acquisition of a 17.5% stake in Kyrgyz Republic-focused coking coal firm Manas Coal.
"The investment in Manas represents an opportunity to buy into a prospectively high value coal project at an attractive valuation. Manas expects in the coming months to complete a full evaluation and development plan and Leed looks forward to a developing relationship with the right to participate in the future development of the project," said Leed's chairman Peter Redmond.
Leed said that, based on government estimates, there is an estimates reserve of around 114m tons of high grade coking coal in the area covered by the Manas licence. Leed has loan £750,000 to Manas and issued 166,666,667 ordinary shares to Manas shareholders at a price of 0.15p per share (with an aggregate value of £250,000) as well as 166,666,667 warrants to subscribe for new ordinary shares in Leed at a subscription price of 0.15p per share.
"While this investment falls outside of Leed's historic focus on oil, it represents a stake in an energy project with strong upside potential," Redmond said.
Shares were trading at 0.12p by 14:00, 20% higher than Friday's close of 0.1p.
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