By Michele Maatouk
Date: Tuesday 15 Sep 2015
LONDON (ShareCast) - (ShareCast News) - Mosman Oil and Gas has sold a royalty to help fund its proposed acquisition of up to a 70% interest in the South Taranaki Energy Project.
Mosman said it has agreed to sell a 2% royalty to Canada-based Ridge Royalty Corp for NZ$4m, or around £1.68m. As well as the STEP royalty, the company has granted Ridge a right to first refusal for a two-year term to acquire similar royalties on its ten other current oil and gas projects in Australia and New Zealand.
It said the sale provides funding for 40% of the purchase of STEP and does not involve any share dilution or debt. In addition, the company is also actively negotiating other funding alternatives to finance the balance.
Chairman John W Barr said: "We are delighted to have secured a large proportion of the funding for the STEP Acquisition, one which the board sees great value in and believes will be transformational for Mosman. "
The total consideration for the STEP acquisition is NZ$10m, or around £4.2m to be paid in two tranches following the 5% deposit which was paid by Mosman in early September.
At 1026 BST, Mosman shares were up 21% at 7.85p.
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Currency | UK Pounds |
Share Price | 0.022p |
Change Today | 0.001p |
% Change | 4.76 % |
52 Week High | 0.063p |
52 Week Low | 0.011p |
Volume | 239,666,153 |
Shares Issued | 12,337m |
Market Cap | £2.71m |
Value |
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Price Trend |
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Income |
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Growth |
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No dividends found |
Time | Volume / Share Price |
16:16 | 208,314 @ 0.021p |
15:53 | 2,000,000 @ 0.022p |
15:35 | 150,000 @ 0.021p |
15:24 | 50,000 @ 0.021p |
15:23 | 63,627 @ 0.021p |
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