Business
Royalty Buy Back Agreement signed on Julia Creek
Royalty Buy Back Agreement signed on Julia Creek.
About this update from Xtract Resources Plc
[{"type":"text","content":"\n \nRNS Number : 9597V Xtract Resources plc 19 December 2013 \n \n\n19 December 2013\n \nXtract Resources Plc\n(\"Xtract\" or the \"Company\" or the \"Group\")\n \nRoyalty Buy Back Agreement signed on Julia Creek Tenements\n \n \nXtract (AIM:XTR) is pleased to announce that is has signed a Royalty Buyback Option exercised by Global Oil Shale Group Plc (\"GOS Group\"). \n \nKey Points\n \n· GOS Group has exercised its option to buy back the 1% net smelter royalty as stipulated in the Royalty Agreement between GOS Australia and Xtract dated 16 December 2012\n· The buy back price is time related and exercise at this time values the option at\nAUD 1,000,000 \n· The option exercise provides Xtract with a further ordinary share allotment in GOS Group of 1,371,365 shares at a current GOS Group share price of 40p, a significant increase from the 11p share price at the original transaction date\n· GOS Group has undertaken to issue the Royalty Shares to Xtract within 7 days of the day of the signed agreement \n· On the issue of the shares the Royalty shall be extinguished \n· Xtract will hold 7,371,365 shares in GOS Group, with an additional 1.5 million to be issued if, as is intended, GOS Group lists on a recognised Stock Exchange \n· The issue of the Royalty Shares will result in Xtract holding 7.6% of the current issued share capital of the GOS Group\n \nJan Nelson, Chief Executive commented: \"Having taken the decision to direct Xtract towards near term mining production propositions, we welcome the purchase of the royalty for our non-core GOS Group investment. We have a significant stake in the GOS Group and have every confidence in their management team to realise value for shareholders. With the current number of GOS shares in issue and at the latest placing price our position has a value of GBP 2.95 million. The early exercise of this option, in our opinion, demonstrates the confidence that the GOS Group have for the future prospects of Julia Creek.\"\n \nAbout Julia Creek\nGOS through its 100% subsidiary Global Oil Shale (Australia) Pty Ltd has right to the large scale Julia Creek oil shale deposit&nbs...