By Tess Ingram
Australian Financial Review
Failed listed resources companies are finding a profitable future above ground — in technology.
Since January, at least eight struggling resources companies, including Latin Gold and Macro Energy, have merged with technology companies. Start-ups and companies looking for alternative capital raising mechanisms are using the “zombie” companies as shell vehicles for backdoor listings on the Australian Securities Exchange.
Last week, Perth-based Intercept Minerals announced plans to acquire US online streaming business xTV for $12.5 million.
Operating conditions are difficult for the small end of the resources sector. The median spend on exploration activity fell 27 per cent in the first quarter, BDO’s March Explorer Quarterly Cash Update said, noting that it was the biggest such decrease since it started looking at the trends.