Fratelli Investments Reduces Stake in Serabi Gold as Holdings Drop Below 7%

• Fratelli Investments Limited has reduced its shareholding in Serabi Gold from 7.9995% to 6.91%, representing a disposal of approximately 1.09 percentage points of voting rights.
• The threshold crossing occurred on August 29, 2025, with the company formally notified on September 2, 2025, demonstrating prompt regulatory compliance under UK disclosure rules.
• The Bermuda-based investment entity retains 5,235,882 ordinary shares with direct voting rights, indicating continued significant confidence in Serabi Gold's prospects despite the reduction.
• Serabi Gold maintains comprehensive investor relations and advisory infrastructure, including nominated adviser Beaumont Cornish Limited and joint UK brokers Peel Hunt LLP and Tamesis Partners LLP.
• The disposal represents a straightforward equity transaction without complex financial instruments, providing transparency for investors monitoring institutional shareholding patterns in the gold mining sector.

Serabi Gold plc, a London-listed gold mining company with operations in Brazil, has received notification of a significant change in its shareholder structure. The company, which trades on both the London Stock Exchange and Toronto Stock Exchange under the leadership of Chief Executive Michael Hodgson, focuses on gold exploration and production activities in South America. Serabi operates through a network of advisors including Beaumont Cornish Limited as its nominated adviser and maintains joint UK brokerage relationships with Peel Hunt LLP and Tamesis Partners LLP.

On September 2, 2025, Fratelli Investments Limited formally notified Serabi Gold of a reduction in its shareholding that crossed the regulatory threshold requiring disclosure under the Financial Conduct Authority's Disclosure and Transparency Rules.

Shareholding Reduction Details

The TR-1 notification reveals that Fratelli Investments Limited, a Bermuda-incorporated entity based in Hamilton, has reduced its position in Serabi Gold. The threshold crossing occurred on August 29, 2025, with formal notification provided to the company on September 2, 2025.

The investment firm's holdings decreased from 7.9995% to 6.91% of voting rights, representing a disposal of shares that brought their total holding to 5,235,882 ordinary shares. This reduction represents a decrease of approximately 1.09 percentage points in their ownership stake.

The shares involved in this notification carry the ISIN code GB00BG5NDX91 and represent direct voting rights with no indirect holdings or financial instruments involved in the transaction.

Regulatory Framework & Compliance

Under the UK's Disclosure and Transparency Rules (DTR), shareholders must notify companies when their holdings cross certain thresholds. The notification indicates this was "an acquisition or disposal of voting rights" rather than any complex financial instrument transaction or corporate action affecting the voting structure.

The filing shows that Fratelli Investments Limited operates independently, with the form indicating the entity "is not controlled by any natural person or legal entity and does not control any other undertaking(s) holding directly or indirectly an interest in the (underlying) issuer."

The notification was completed in the UK on September 2, 2025, demonstrating compliance with regulatory timelines that require prompt disclosure of significant shareholding changes.

Financial Instrument Analysis

The TR-1 form confirms that Fratelli Investments' position consists entirely of ordinary shares with direct voting rights. The filing shows zero holdings in financial instruments such as derivatives, options, or other securities that could convert to voting shares.

This straightforward shareholding structure, with 6.91% direct ownership and 0% through financial instruments, indicates a traditional equity investment approach rather than complex trading strategies involving derivatives or structured products.

Market Context & Implications

The reduction in Fratelli Investments' stake comes at a time when gold mining companies face various market pressures including commodity price volatility, operational challenges, and changing investor sentiment toward precious metals investments.

For Serabi Gold, the disposal by a significant shareholder could signal several scenarios: profit-taking by the investor, portfolio rebalancing, or potentially concerns about the company's prospects. Alternatively, it might simply reflect strategic allocation decisions unrelated to Serabi's specific performance.

The fact that Fratelli Investments maintained a substantial 6.91% position suggests continued confidence in the company's prospects, as they chose to reduce rather than eliminate their investment entirely.

Shareholder Communication Infrastructure

Serabi Gold maintains comprehensive investor relations capabilities through multiple channels. Chief Executive Michael Hodgson can be reached directly, while Vice President of Investor Relations & Business Development Andrew Khov handles dedicated investor communications.

The company's professional advisory network includes Beaumont Cornish Limited serving as nominated adviser and financial adviser, with Roland Cornish and Michael Cornish as key contacts. Joint UK broking services are provided by Peel Hunt LLP through Ross Allister and Tamesis Partners LLP via Charlie Bendon and Richard Greenfield.

For European financial public relations, Serabi engages Camarco, with Gordon Poole and Emily Hall managing communications. This comprehensive advisory structure suggests a company committed to maintaining strong investor relations and market communication standards.

Corporate Governance & Transparency

The prompt filing of the TR-1 notification demonstrates both Fratelli Investments' compliance with regulatory requirements and Serabi Gold's commitment to transparency in shareholder disclosures. The company makes these announcements available through its website at www.serabigold.com, ensuring broad accessibility for investors and stakeholders.

The notification includes standard regulatory disclaimers noting that "Neither the London Stock Exchange, the Toronto Stock Exchange, nor any other securities regulatory authority, has approved or disapproved of the contents of this announcement," emphasizing the factual nature of the disclosure.

Investment Considerations

Several factors emerge from this shareholding change that investors should consider:

The reduction represents a material disposal by a significant shareholder, which could influence market sentiment and share price performance in the near term. However, the retention of a 6.91% stake suggests the investor maintains long-term confidence in Serabi's prospects.

The timing of the disposal, occurring in late August 2025, may reflect broader market conditions, seasonal trading patterns, or specific portfolio management decisions rather than company-specific concerns.

Investors should monitor whether this disposal represents an isolated transaction or part of a broader pattern of institutional investor behavior regarding Serabi Gold's shares.

Conclusion

Fratelli Investments Limited's reduction of its Serabi Gold stake from 7.9995% to 6.91% represents a significant but not wholesale disposal of shares. While the transaction crossed regulatory notification thresholds, the retention of a substantial holding suggests continued long-term confidence in the company's prospects.

For investors considering Serabi Gold, this shareholding change provides transparency into institutional investor behavior while maintaining the company's established operational and advisory structure. The prompt regulatory compliance and comprehensive investor relations infrastructure demonstrate corporate governance standards that should provide confidence to both existing and prospective shareholders.

The disposal should be viewed within broader market context rather than as an isolated indicator of company-specific concerns, particularly given the retained significant stake and absence of any accompanying commentary suggesting fundamental performance issues.