Shares in exploration company Minmet look set to be suspended for several more months as it prepares to engineer a reverse takeover of another mining company, Tucumcari Exploration LLC (TUCX).

Minmet already owns 25 per cent of TUCX through Tucumcari Investments Limited (TIL), and has been granted an option to purchase the rest of the company.

It will build on its stake by engineering a reverse takeover of TUCX, Minmet said yesterday.

Minmet also announced the cancellation of a planned $87.5 million (€59.8 million) reverse acquisition of Alaska Oil and Gas Resources. The $4.35 million deposit paid to Alaska will be repaid, with interest.

The company said it is instead focusing on the Tucumcari operations in New Mexico.

Shares in Minmet were suspended on London's Alternative Investment Market (AIM) last month in advance of yesterday's announcement, prompting shareholder grumbling and calls for an extraordinary general meeting.

The decision to cancel the Alaska deal on December 31st was made because Minmet's board regarded Alaska as "rather too speculative at this time in our development", said chairman Peter Maddocks.

Tucumcari was a safer bet, he said. "Basically we can double our money on a more secure investment," said Mr Maddocks.

Minmet said it has requested that trading in its shares remain suspended as the exercise of the option to buy TUCX will be classed as a reverse takeover.

On January 2nd, Minmet sold its interest in the Bjorkdal gold mine in Sweden to Gold-Ore Resources for $2 million (€1.36 million) in cash and four million shares.

The company's shares were trading at 8.5p when they were suspended on December 21st, down from a high of 15.75 on February 2nd.

Minmet plans to publish a full circular to shareholders and wants its shares to remain suspended until this happens.

This is likely to take several months, the company said yesterday.