The Dublin-based engineering company, Mercury Holdings, has taken a 5 per cent stake in the exploration company Ovoca Resources at a cost of €390,000 (£307,150).

In a statement, Ovoca said that the investment by Mercury was part of "their outgoing investment strategy". The statement added: "It is intended there will be discussions between Ovoca and Mercury Holdings to explore areas of mutual interest which it is hoped may lead to future business opportunities." The proceeds of the placing will be used to fund Ovoca's exploration activities.

Ovoca director Mr Frank Buckley declined to expand on the areas of "common interest", but added, "we're not as far apart as you might think". He said, however, that there are no plans for Mercury to reverse into Ovoca and obtain a stock market listing in this manner. "That's not on the table."

Mercury Holdings, through Mercury Engineering, is one of the biggest mechanical and electrical engineering companies in Ireland and is thought to have a turnover in excess of £100 million.