Business
Potential disposal of Mexican milling operations
Potential disposal of Mexican milling operations.
About this update from Zephyr Energy Plc
[{"type":"text","content":"\n \nRNS Number : 5463Y Rose Petroleum PLC 06 March 2017 \n\nDissemination of a regulatory announcement that contains inside information according to regulation (EU) no. 596/2014 (\"MAR\").\n6 March 2017\nRose Petroleum plc\n(\"Rose\", the \"Company\" or the \"Group\")\n \nPotential disposal of Mexican milling operations\n \nRose (AIM: ROSE), the AIM quoted natural resource business, announces that it has entered into a memorandum of understanding (\"MOU\") with Magellan Gold Corporation (OTCQB: MAGE) (\"Magellan\") for the potential disposal of the Company's mineral processing mill operation in San Dieguito de Arriba, Mexico and its associated assets, licenses and agreements (together, the \"SDA Mill\") for a total consideration of US$1,500,000 (\"the Proposed Disposal\"). The Group has operated the mill for ten years and it is currently engaged in toll milling for third party ore producers.\nUnder the terms of the MOU, the Company has granted Magellan a 90-day option period, for a non-refundable US$50,000 deposit, already paid, by Magellan, to purchase the SDA Mill subject to the satisfaction of a number of conditions. The MOU also provides Magellan with the option of extending this option period by a further 60 days in consideration of an additional US$100,000, which would be credited against the final purchase price should the sale proceed. The total purchase price for the SDA Mill is US$1.5 million, payable as to US$1.0 million in cash and US$500,000 in restricted common stock (shares) in Magellan.\nCompletion of the disposal of the SDA Mill is subject to a number of conditions, including but not limited to, the Group and Magellan entering into a separate asset purchase agreement, the completion of satisfactory due diligence by Magellan and Rose, Magellan completing a financing to acquire the SDA Mill and an audit by Magellan of the SDA Mill's financial statements at Magellan's cost. In addition, as the SDA Mill has contributed the majority of Rose's revenue in the past 12 months, any sale would be subject to the approval of shareholders of Rose at a general meeting of the Company. There can therefore be no assurance at this stage that the sale of the SDA Mill will be completed. \nShould the transaction proceed, Rose will publish a Circular for Shareholders, with notice of a general meeting, setting ou...