Saturday, February 13, 2010

Metals X takes stake in Jabiru Metals

Time               Price      Volume         Value        Condition
02:46:46 PM 0.340 136,738,240 46,491,001.60 XTOS

The above reported trade started tongues wagging yesterday and pushed Jabiru Metals (JML) to a high of $0.425 before it closed at $0.40 for the day.  At 3:50pm it was announced that Metals X (MLX) had taken a 19.99% stake in the company.  In the announcement it was quoted that "Metals X believes JML is a quality emerging base metal miner with excellent longer term growth prospects. The JML assets fit well with the diversified portfolio of assets and investments already held by Metals X."

It is rumoured that the other 26 million shares of the 136 million were picked up by a Hong Kong investor.  JML is at least one to put on the watchlist - for now.  Anybody that takes a 19.99% position in a company is either attempting to take a blocking stake should a takeover eventuate or setting up for launching one themselves (a company cannot have a stake greater than 20% without lauching a full takeover).  It's probably just what JML needed - it will at least put a bit of a floor in the share price and arrest the share price slide recently considering commodity prices have been weak this month.

No comments:

Post a Comment