LONDON (ShareCast) - Shares in Armadale Capital were up more than 30% after it announced Mine Restoration Investment (MRI), in which it owns 35%, was to take a stake in Iron Mineral Beneficiation Services Proprietary (IMBSP).
Shares in the investment company were up 30.73% at 10:53 on Monday to 6.70p. Armadale's stake in MRI is worth about ZAR17.5m and it previously said it wanted to realise its investment.

According to an announcement, MRI planned to take a 39.2% stake in IMBSP, which is a substantial processor of iron ore fines.

As part of the deal, MRI would need to raise £10.4m through a private placement of MRI shares at ZAR0.07 per share.

Armadale director Justin Lewis said it is encouraged by the significant acquisition.

"It is pleasing that the directors of MRI believe they are able to gain investor support through a substantial fundraising at 7 cent per share.

"This underpins the value of Armadale's investment and we believe will facilitate the process to realise our investment, which we look forward to updating shareholders on," Lewis said in an announcement.

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