Zeta to increase stake in GME

Peter Sullivan-led Zeta Resources is set to increase its position in Perth-based nickel company GME Resources to nearly 50 per cent following the acquisition of investment firm Axelrock for $50.1 million.

Sydney-based Zeta currently holds a 10 per cent stake in GME, which owns the NiWest nickel-cobalt project located between Laverton and Leonora north-west of Perth.

The purchase of Axelrock will increase Zeta’s position in GME to 44 per cent.

Zeta’s stake in Alliance Mining Commodities will rise from 1 per cent to 28 per cent, while its 25 per cent position in Seacrest is set to increase to 41 per cent.

Both Alliance and Seacrest are unlisted companies.

The acquisition will be funded via a share placement with Zeta set to issue 110.8 million shares at 45.2 cents per share.

The binding term sheet is subject to a number of conditions including approval from each company’s board and the Foreign Investment Review Board.

Zeta chairman Peter Sullivan said the purchase would add value to Zeta’s portfolio.

“This value-accretive transaction delivers a substantial boost to Zeta’s prospects, consolidating its position in three attractive resource plays,” he said.

Mr Sullivan is the existing chairman of GME and AMC and was previously the chief executive of Resolute Mining.