Completion of SDA Mill disposal
Prior 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.
1 December 2017
Rose Petroleum plc
("Rose", the "Company" or the "Group")
Completion of SDA Mill disposal
Rose (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").
The 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.
In 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 disposal, or to acquire them for US$550,000 cash in the period from six months following the completion of the disposal to the expiry of the option. This option expires one year and five business days after the completion date. If the option is not exercised during the option period, the shares will be freely tradeable and with no restrictions.
Full details of the terms of the disposal and the rationale behind it were announced by the Company on 1 September 2017. The disposal was approved by Rose's shareholders at the Company's General Meeting that was held on 18 September 2017.
Matthew Idiens, CEO commented "I am delighted that we have now completed the disposal of the SDA Mill. I would like to thank Magellan for their commitment to this process and we wish them the very best of luck with their Mexican endeavours. In Rose's capacity as a significant shareholder in Magellan, we look forward to watching how their operations progress.
"I'd also like to thank all our employees at the SDA Mill for their hard work and support over many years, and we wish them the best of luck in the future.
"We now look forward to focusing our operational and strategic efforts on our oil and gas assets in the Paradox Basin, U.S.A and we expect to be in a position to update the market shortly on progress."
Enquiries:
|
Matthew Idiens (CEO) Chris Eadie (CFO)
|
Rose Petroleum plc |
Tel: +44 (0) 20 7225 4595 Tel: +44 (0) 20 7225 4599 |
|
Jeremy Porter / James Reeve / Liz Kirchner
|
Allenby Capital Limited
|
Tel: +44 (0) 20 3328 5656
|
|
Andy Thacker
|
Turner Pope Investments |
Tel: +44 (0)20 3621 4120 |
Media enquiries:
|
Peter Curtain
|
Allerton Communications |
Tel: +44 (0) 20 3633 1730 peter.curtain@allertoncomms.co.uk |
This information is provided by RNS
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