Alba Mineral Resources PLC Acquisition of Further Interest in Horse Hill (2872H)
March 12 2015 - 7:30AM
UK Regulatory
TIDMALBA
RNS Number : 2872H
Alba Mineral Resources PLC
12 March 2015
For Immediate Release
12 March 2015
Alba Mineral Resources PLC
("Alba" or the "Company")
Acquisition of Further Interest in Horse Hill
Alba is pleased to announce that, on 12 March 2015, it executed
a binding conditional agreement ("Agreement") to acquire the 5 per
cent shareholding held by Regency Mines Plc ("Regency") in Horse
Hill Developments Limited ("HHDL"). The total consideration payable
is GBP300,000 in cash. Alba will also assume the outstanding cash
calls owed to HHDL by Regency, being GBP60,000 in total.
Horse Hill
The Horse Hill-1 well is located within onshore exploration
licence PEDL 137, on the northern side of the Weald Basin near
Gatwick Airport. Alba currently owns a 5% direct interest in HHDL.
HHDL is a special purpose company that owns a 65% participating
interest and operatorship of Licence PEDL 137 and the adjacent
Licence PEDL 246 in the UK Weald Basin. The participants in the
Horse Hill-1 well are HHDL with a 65% working interest and Magellan
Petroleum Corporation with a 35% interest. Alba's net attributable
interest in PEDL 137 and 246 is therefore 3.25% but will increase
to 6.5% on the completion of the acquisition of Regency's
interest.
Acquisition terms
Alba has agreed to pay GBP10,000 in the form of a non-refundable
deposit within 7 days of the execution of the Agreement. The
balance of GBP290,000 will then be payable on completion of the
acquisition.
Completion of the acquisition is subject to the satisfaction, or
waiver by Alba, of the following conditions precedent within 45
days of the execution of the Agreement:
-- completion of an equity capital raising by Alba for at least
GBP300,000 at no less than 0.25p per share and otherwise on terms
satisfactory to Alba;
-- confirmatory due diligence to Alba's satisfaction in respect
of title to Regency's shareholding in HHDL and Regency's compliance
with the terms of the shareholders' agreement between HHDL
shareholders ("HHDL SHA"); and
-- receipt of any necessary third party consents, approvals or
waivers in respect of the transaction, including without limitation
from HHDL shareholders under the terms of the HHDL SHA.
Additionally, on completion Alba shall assume the obligation to
pay the outstanding cash calls issued to Regency by HHDL, being a
total of GBP60,000.
Further, subject to completion occurring, Regency has agreed
that during the 12 month period following the date of the Agreement
it will not dispose of any interest in Alba's ordinary shares
except through Alba's brokers in accordance with Alba's reasonable
requirements in order to maintain an orderly market in Alba's
shares. Regency also grants to Alba or its appointed broker or
adviser the exclusive right for a period of 90 days following the
execution of the Agreement to place up to 33% of Regency's stake in
Alba at a price no less than a 10% discount to the 10 day VWAP
prior to the date of purchase, less usual brokerage commissions and
charges.
Michael Nott, Alba's CEO, comments:
"We are very pleased to announce this agreement by Alba to
acquire a further interest in the Horse Hill project. Exploration
at Horse Hill has been successful with a significant and
potentially commercial onshore oil discovery announced late last
year. The drilling of the Horse Hill-1 well not only resulted in an
oil discovery in the Jurassic Portland Sandstone but also revealed
further opportunities for additional oil potential, particularly in
the Kimmeridge Limestones. Alba is now even better placed to
benefit from further success at Horse Hill."
For further information, please contact:
Alba Mineral Resources plc
Michael Nott, CEO +44 (0) 20 3696 4616
Cairn Financial Advisers
LLP
Avi Robinson/ James Caithie
Dowgate Capital Stockbrokers +44 (0) 20 7148 7900
Limited:
Jason Robertson/ Neil Badger +44 (0) 1293 517 744
Notes to Editors:
Alba holds interests in Mauritania (uranium: JV with FOSSE
Investments Limited) and Ireland (base metals). It also owns a 5
per cent interest in Horse Hill Developments Limited, the company
which owns a 65 per cent participating interest and operatorship of
the Horse Hill oil and gas project. The projects are at different
stages of development. The Mauritania uranium project comprises
early phase exploration targets, whereas drilling has been
undertaken on the Irish base metals project. The Horse Hill-1 well
has now completed at a total depth of 8,770 feet.
Alba continues actively to review and discuss other project
opportunities which have value enhancing potential for the Company
whether by acquisition, farm in or joint venture in a range of
jurisdictions around the world.
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
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