Business
Completion of SDA Mill disposal
Completion of SDA Mill disposal.
About this update from Zephyr Energy Plc
[{"type":"text","content":"\n \nRNS Number : 0655Y Rose Petroleum PLC 01 December 2017 \n\nPrior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (\"MAR\"). With the publication of this announcement, this information is now considered to be in the public domain.\n1 December 2017\n \nRose Petroleum plc\n(\"Rose\", the \"Company\" or the \"Group\")\n \nCompletion of SDA Mill disposal\n \nRose (AIM: ROSE), the AIM quoted natural resources business, is pleased to announce that on 30 November 2017 it completed the disposal of the Company's mineral processing mill operation in San Dieguito de Arriba, Mexico and its associated assets, licences and agreements (together, the \"SDA Mill\") to Magellan Gold Corporation (OTCQB: MAGE) (\"Magellan\").\n \nThe total consideration for the sale of the SDA Mill was US$1.5 million. US$1.0 million of the consideration was payable in cash, of which US$100,000 was received on 1 June 2017. Rose has now received the closing cash proceeds from Magellan of US$872,418 which is made up of the US$900,000 cash proceeds payable for the SDA Mill plus various credits owed by Magellan to Rose in respect of the ongoing SDA Mill operations, less US$50,000 which will be retained by Magellan pending any claims or liabilities that may arise in respect of Rose's tenure of the SDA Mill. Absent any claims, the retained proceeds will be released to Rose on 10 March 2018, being 100 days from the sale completion date.\n \nIn addition to the cash consideration, the balance US$500,000 of the total consideration will be received in 14,200,834 restricted common stock (shares) in Magellan. This number of shares is based on the volume weighted average price per share of Magellan's stock for the 30 calendar days preceding the 30 November 2017. The consideration shares represent approximately 15 per cent. of Magellan's enlarged share capital. Under SEC regulations, the Magellan stock will not be freely tradeable for a period of twelve months post issue. In order to facilitate the disposal of these shares, Rose has agreed to grant Magellan the option to acquire these shares for US$500,000 cash within the six-month period following the completion of the di...