Business
Investment in GEM International Resource Inc.
Investment in GEM International Resource Inc..
About this update from Quantum Helium Limited
[{"type":"text","content":"\n \nRNS Number : 0988Z Mosman Oil and Gas Limited 24 May 2016 \n\n \n24 May 2016\nMosman Oil and Gas Limited\n(\"Mosman\" or the \"Company\")\n \nInvestment in GEM International Resource Inc.\n \nMosman Oil and Gas (AIM: MSMN), the New Zealand and Australia focused oil exploration and development company announces that it has made a CAD$400,000 (AUD 425,000) cash investment in the TSX.V listed; GEM International Resource Inc. (GEM). The investment forms part of a CAD$1,225,000 placing recently announced by GEM. The placing has been completed at CAD5 cents and there is an attached non-transferrable CAD15 cent two year warrant. The last available share price quote for GEM is 8.5 cents. The code is TSX-V: GI.\n \nMosman's investment will represent 8 million shares which equates to just under 20 per cent. of GEM's enlarged issued share capital and will result in Mosman being one of GEM's largest shareholders. It is anticipated that a Director of Mosman may join the GEM Board, but no final decision has been made on this matter.\n \nGEM has recently entered into a binding letter agreement with Gems International Limited (\"Global Gems\") for an option to acquire 91.5% of the issued and outstanding shares of Global Gems and thereby GEM can attain a 91.5% interest in 45% of the Dala diamond exploration project (Dala) in Angola. Dala is located immediately south of the provincial capital Saurimo and just 25 km south of the fifth largest diamond mine in the world, the Catoca Mine. Dala is an early stage mine project with potential for the discovery of both alluvial and kimberlite diamonds deposits. The project is some 3,000 sq km being the largest allowable size for a diamond concession under the Angolan Mining Code.\n \nCommenting on the investment, John W Barr, Chairman of Mosman said: \"With current prevailing market conditions in the oil and gas sector, the Board has expanded its horizon, reviewing investment opportunities in the broader resources arena. Whilst the Board continues to evaluate interesting opportunities in the Oil and Gas sector, the investment into GEM is at a pivotal point in its development and the Board is confident of the potential GEM's stake in the Dala diamond project will deliver.\"\n \nPart of the funds from the placing will be a US$300,000 payment to the vendor which ...