Business
Further re Sale of Aminex USA
Further re Sale of Aminex USA.
About this update from Aminex Plc
[{"type":"text","content":"\n \nRNS Number : 7489J Aminex PLC 17 June 2014 \n \n\n17 JUNE 2014\n \nAminex plc\n(\"Aminex\" or \"the Company\")\n \nFurther re: Sale of Aminex USa inc.\nSale and Purchase Agreement signed for the sale of Aminex USA Inc. for a total consideration of $5,000,000. \n \nFurther to the Company's 9 May 2014 statement, the Board of Aminex PLC (\"Aminex\" or the \"Company\"), an independent oil and gas company premium-listed on the London Stock Exchange and primary-listed on the Irish Stock Exchange with activities focused in Tanzania, is pleased to announce that it has signed a sale and purchase agreement for the sale of Aminex USA Inc. (\"Aminex USA\") to Northcote Energy Ltd. (\"Northcote\"), an AIM listed oil and gas company, and Springer Oil and Gas LLC. (\"Springer\"), a private company, for a total consideration of USD$5,000,000. \n \nConsideration from the sale of Aminex's US portfolio of assets, which mainly comprise the Shoats Creek field in Louisiana and the Alta Loma field in Texas, will allow the Company to pay down part of its loan facility and provides further flexibility for working capital. \n \nPrinciple terms of the transaction:\n \n· Sale of Aminex USA to Northcote and Springer for a total consideration of US$5,000,000;\n \n· US$5,000,000 payment comprises: US$150,000 of cash, US$350,000 worth of Northcote ordinary shares at a price to be set once shareholder approval is received (which will be considered as an asset available for sale) and a production payment of US$10 per barrel until a total of US$4,500,000 has been recovered with first payments to commence from 1 January 2015;\n \n· Northcote and Springer to invest a minimum of US$1,000,000 development capital into the assets over the next 12 months to increase production from the assets; \n \n· Development capital and the cash consideration of US$150,000 to be secured by 115 million ordinary shares of Northcote pledged by its largest shareholder, RiverBend Energy LLC., with a current market value of approximately US$1,500,000; and\n \n· In the event that Northcote or Springer dispose of any of their interests in Aminex USA, Aminex will receive 50% of the proceeds ...