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Heads of Terms to Acquire Helium Assets
Heads of Terms to Acquire Helium Assets.
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[{"type":"text","content":"\n \nRNS Number : 2338B Opera Investments plc 15 June 2016 \n\nOpera Investments plc (\"Opera\" or the \"Company\")\nHeads of Terms Agreed to Acquire Highlands Helium Developments Limited\nSuspension of Trading \nFor release: 15 June 2016\nOpera Investments plc (\"Opera\" or the \"Company\") is pleased to announce that it has reached a heads of terms agreement with Highlands Natural Resources plc (\"Highlands\"), the London listed natural resources company, to acquire all of the issued share capital of Highland's subsidiary, Highlands Helium Development Limited.\nBackground\nOpera was listed in April 2015 in order to undertake one or more acquisitions of target companies or businesses in the natural resources sector within a defined investment strategy.\nOpera and Highlands have conditionally agreed that Opera will acquire all of the issued share capital of Highlands Helium Development Limited which owns Highlands' Helios Two helium and natural gas project in Montana, USA for a consideration of approximately £4.0 million (the \"Acquisition\"). The heads of terms provide that the Acquisition will be satisfied by the issuance of new ordinary shares of £0.01 each in Opera (\"Opera Shares\") to Highlands at a price of £0.15 per Opera Share (the \"Consideration Shares\"), valuing the existing issued share capital of Opera at £2.5 million. In addition, it is envisaged that, in conjunction with completion of the Acquisition, there will be an equity financing raising net proceeds of not less than US$750,000 to fund certain future investment and working capital requirements of Helios Two. The heads of terms also stipulate that Opera will reimburse Highlands all of the professional costs incurred by Highlands on this project as well as any costs of further leases that could be acquired for the project (with any such further leases also being the subject of the Acquisition).\n \nBoth parties believe that the Helios Two assets represent a significant opportunity to take advantage of a potentially significant helium resource, at a time of global concerns around helium scarcity and helium price increases. It is the intention to establish a team dedicated to the development and commercialisation of the Helios Two project, which consists of exploration licences covering 59,033.82 acres in Custer, Carter and Fallon Co...