News: Lakes Oil jumps 50% on Rinehart investment

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Shares in Lakes Oil NL (ASX:LKO) jumped 50 per cent yesterday after mining magnate Gina Rinehart bought a substantial interest in the oil and gas explorer.

 

Ms Rinehart’s company Hancock Prospecting has spent $4.25 million to take up an 18.6 per cent stake through a notes placement.

 

As part of the deal climate change commentator Professor Ian Plimer has been appointed as a non-executive director.

 

Lakes Oil says the issue provides it with funds to progress its oil and gas activities in on-shore regions of Victoria.

 

Joint venture partner Armour Energy Limited (ASX:AJQ) has also bought $1.75 million of notes to boost its interest to 18.6 per cent.

 

Shares in Lakes Oil jumped 50 per cent yesterday, closing at $0.006 and lifting its market capitalisation to $41.6 million. 

Lakes Oil reported a net loss of $3 million in the 2012 financial year.