TAG to Transfer Stake in New Zealand Power Generator to Coronado Resources

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[{"type":"text","content":"\n\n\n\n\n\nVANCOUVER, May 15, 2013 /CNW/ - TAG Oil Ltd. (TSX: TAO; OTCQX: TAOIF), reports that it has agreed to sell its 90%\n stake in Opunake Hydro Limited (\"OHL\"), an established electricity generator and supplier in New Zealand, to\n Coronado Resources Ltd. (TSX-V: CRD; OTCQX: CRDAF) in exchange for\n common shares of Coronado valued at approximately CDN$5,000,000. The\n common shares of Coronado being issued to TAG Oil and the vendor of the\n remaing 10% interest represents full consideration paid by Coronado to\n acquire 100% of the issued and outstanding shares of OHL.\n\n\nOHL is an active power generation company based in New Zealand, and is\n poised to rapidly expand its generation capabilities. Upon completion\n of this transaction, OHL will have working capital of approximately\n CDN$8 million allowing the company to acquire additional gas fired\n electricity generation equipment, while securing natural gas supply\n through TAG. This will enable both TAG and OHL to benefit from\n increased generation of electricity for sale into thriving retail,\n industrial and commercial markets.\n\n\nThe transaction is being completed pursuant to the terms of a definitive\n share purchase agreement dated May 13, 2013 between TAG Oil, Coronado\n and the vendor of the remaining 10% interest in OHL. Under the terms of\n the share purchase agreement, TAG will receive 13,015,410 common shares\n of Coronado valued at CDN$0.39 per share. The Coronado share price is\n based on the volume weighted average closing price of Coronado's common\n shares on the TSX Venture Exchange (\"TSX-V\") for the 20 consecutive trading days ending on May 10, 2013.\n\n\nTAG currently holds 25,975,000 common shares, or 40.08%, of Coronado and\n upon completion of the transaction, TAG will hold 38,990,410 common\n shares, or 49.18%. The common shares will be held for investment\n purposes and TAG may, depending on market and other conditions,\n increase or decrease its beneficial ownership of common shares or other\n securities of Coronado whether in the open market, by privately\n negotiated agreement or otherwise.  Completion of the transaction is\n subject to a number of conditions, including approval of the\n Transaction by Coronado shareholders, the TSX-V and under the New\n Zealand Overseas Investment Act.\n\n\nThis press release is issued pursua...

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