Union Resources Limited
16 November 2005
For release: 07.00 hours, 16 November 2005
UNION RESOURCES LIMITED
Sale of telecoms interest
Union Resources Limited ('Union') is pleased to announce that an agreement has
been signed between Union Management Limited ('UML'), Australian Gigahertz
Networks International ('AGNI') and ISM Communications Corporation ('ISM') that
will result in ISM acquiring all of the issued shares in, and loans to, AGN
Philippines Inc ('AGNP') held by AGNI.
AGNP holds a 40% stake in Eastern Telecommunications Philippines Inc. ('ETPI') a
fully franchised Philippines telecommunication company.
The total consideration for the transaction is US $8,211,000, of which UML will
be entitled to 54.8%. UML is expected to receive net proceeds of approximately
US $4,178,000 after deduction of legal costs, transaction costs and selling
commissions totalling 6%.
UML is a wholly-owned subsidiary of Union. The funds when received will be used
to advance the Mehdiabad Project and for working capital to the Company.
Under the terms of the agreement a deposit of US $400,000 has to be lodged by
ISM with the escrow agent within five days.
Settlement or closing of the agreement is to occur within 30 days. At closing
the escrow agent will release US $7,711,000 and will retain US $500,000 to cover
any outstanding tax liabilities of AGNP or AGNI. The US $500,000 will be
released when either the tax clearance is obtained or after one year whichever
is the sooner.
UML therefore expects to receive net proceeds of US $3,904,000 (A$5,365,000)
upon closing and a further US $274,000 ($A 376,000) when the tax clearance is
For further information:
Rob Murdoch -
Union Resources Limited Tel: 00 61 7 3833 3833
Westhouse Securities LLP Tel: 020 7601 6100
Bankside Consultants Tel: 020 7367 8888
This information is provided by RNS
The company news service from the London Stock Exchange