Dec 15 (Reuters) - Struggling British sub-prime lender Amigo Holdings said on Monday it has appointed Australian entrepreneur Craig Ransley as its executive chair, as the company continues to explore a potential reverse takeover amid plans to become a shell company.
Separately, in its annual report, Amigo's CEO Nick Beal also said the firm was looking for potential transactions in the mining sector.
Mining-related deal activity has accelerated recently as miners pursue M&A for critical minerals such as copper amid supply disruptions and energy transition demand, exemplified by Anglo American's $53 billion merger with Canada's Teck Resources.
Amigo's shares fell 14.3% to 0.45 pence in early trade.
All of Amigo's operating units have now been put into liquidation through solvent voluntary wind-ups and the firm is a cash entity with limited funds.
Ransley was appointed by the firm as a consultant in October to help explore strategic options for Amigo to remain a listed company following troubles over mis-sold loans that pushed it to the brink of collapse.
Amigo, which offered high-interest loans to borrowers excluded from mainstream banks, was censured by Britain's financial regulator in 2023 for mis-selling loans, leaving many customers struggling with unaffordable debt.
"A key focus of mine will be exploring the opportunity to reposition Amigo with a focus on gold and rare earth mining opportunities in Africa, principally in Tanzania and Mauritania," Ransley said in a statement.
(Reporting by DhanushVignesh Babu in Bengaluru; Editing by Mrigank Dhaniwala and Eileen Soreng)
