Business
Acquisition of Further 16.665% in West Newton
Acquisition of Further 16.665% in West Newton.
About this update from Reabold Resources Plc
[{"type":"text","content":"\n \n \n RNS Number : 8374N\n Reabold Resources PLC\n 26 May 2020\n \n \n \n \n 26 May 2020 \n \n \n \n \n Reabold Resources plc\n \n \n \n (\"Reabold\" or the \"Company\")\n \n \n Conditional Acquisition of Further 16.665 per cent. Interest in West Newton\n \n \n £5 million Discretionary Cash Facility\n \n \n Issue of Equity & Total Voting Rights\n \n \n \n \n \n Reabold, the AIM investing company which focuses on investments in upstream oil and gas projects, is pleased to announce the conditional acquisition of an additional 16.665 per cent. interest in the onshore UK licence PEDL 183 (the \"\n \n Licence\n \n \") (the \"\n \n Acquisition\n \n \"), which contains the West Newton field, from Humber Oil & Gas Ltd (\"\n \n Humber\n \n \").\n \n \n \n \n \n Highlights: \n \n \n · \n Opportunistic acquisition of Humber's 16.665 per cent. interest in West Newton\n \n \n o \n Acquisition conditional on, inter alia, Oil and Gas Authority approval \n \n \n · \n Acquisition funded by cash consideration of £1.4 million and 350,000,000 Consideration Shares\n \n \n ·\n Economic interest in West Newton to increase to approximately 56 per cent. from approximately 39 per cent.\n \n \n · \n Timely acquisition of Humber's interest is expected to allow the West Newton JV to progress the work programme optimally and unlock the value in the asset\n \n \n · \n Agreed Discretionary Facility for up to £5 million to provide further financial flexibility and strength \n \n \n \n \n \n \n Acquisition \n \n \n to increase investment in West Newton \n \n \n \n \n \n \n Reabold has signed a conditional Sale and Purchase Agreement (\"\n \n SPA\n \n \") to acquire Humber's interest in the Licence. The consideration for the Acquisition of the additional 16.665 per cent. interest in the Licence will comprise of £1.4 million in cash (subject to adjustment) and the issue of 350,000,000 new ordinary shares of 0.1p each in the capital of Reabold (\"Ordinary Shares\") (the \"\n \n Consideration\n \n \n \n Shares\n \n \").\n \n \n \n \n \n On completion of the Acquisition, the Company's effective economic interest in the Licence will increase from approximately 39 per cent. to approximately 56 per cent. This interest will comprise a 16.665 per cent. direct interest and a 39.66 per cent. indirect interest via th...