Business
Acquisition
Acquisition.
About this update from Xtract Resources Plc
[{"type":"text","content":"\n Resmex plc\n20 January 2006\n\n20 January 2006\n\nThis announcement is not for release, publication or distribution in or into the\nUnited States, Canada, Australia or Japan.\n\n Resmex plc\n ('Resmex' or the 'Company')\n\n Proposed acquisition of Xtract Oil Limited ('Xtract')\n\n Admission to trading on AIM\n\nIntroduction\nThe Company announces that it has made an offer to acquire the whole of the\nissued share capital of Xtract that it does not already own and that the Offer\nhas been accepted by the Vendors. The consideration payable under the Offer\namounts in aggregate to approximately £3.5 million comprising £2.7 million in\nShares (based on the closing price of the Shares of 4.625p per Share at 19\nJanuary 2006) and £0.8 million in cash. The Consideration Shares will represent\napproximately 20.1% of the Enlarged Share Capital.\n\nThe Acquisition constitutes a reverse takeover of the Company under the AIM\nRules and therefore requires approval of Shareholders at the Extraordinary\nGeneral Meeting.\n\nInformation on Xtract\nXtract is investigating and developing a technology for the processing of oil\nshale. It is intended that the Xtract Technology will produce\nrefinery-acceptable crude oil from the kerogen contained in the oil shale. The\nXtract Technology is a method of processing oil shale in the presence of\nhydrogen and solvents, known as supercritical solvent hydrogenation. Validation\nof the experimental work and development of a commercial process would result in\nintellectual property which may be licensed for use with oil shale deposits\nthroughout the world. There is a substantial shortfall in oil production in\nAustralia leading to increasing imports of oil; if successful and commercially\nviable, Xtract's proposed processes will enable an additional supply of crude\noil for the Australian market.\n\nXtract, in conjunction with external consultants, has designed and intends to\noperate an experimental programme to carry out extractions using representative\noil shale samples and assess the key risks inherent in the process.\n\nXtract's intellectual property and licensing strategy\nThe primary objectives of Xtract is to develop a technology for the extraction\nof oil from kerogen in oil shale which is capable of protection and licensing.\nThe intellectual property developed through this work will be own...