Sefton Resources Inc Trading Statement (8653U)
August 03 2015 - 4:30AM
UK Regulatory
TIDMSER
RNS Number : 8653U
Sefton Resources Inc
03 August 2015
3 August 2015
Sefton Resources, Inc.
("Sefton" or the "Company")
Company Update
Sefton Resources provides the following update in relation to
its corporate activities.
Kansas Assets
Further to the announcement on 30 June 2015 that the Company had
reached a provisional agreement with a third party to sell all of
the assets and liabilities of Sefton's two wholly owned
subsidiaries: TEG MidContinent Inc. and TEG Transmission LLC (the
"Kansas Assets"), the proposed buyer no longer wishes to proceed on
the previously agreed terms. The new terms proposed by the
interested party, influenced by the recent fall in oil prices, are
not deemed to be in the best interest of Sefton's shareholders, so
as a result, the provisional agreement with that particular party
has been terminated.
As a result of the termination of the previously announced
provisional agreement, Sefton plans to appoint a consultant to
assist with the previously stated strategy to divest of these
assets. The Company hopes to conclude an agreement which is
acceptable to shareholders in the near future.
Update on Development Agreement
The Company continues to make good progress with regards to the
potential acquisition of a portfolio of assets in Indonesia
identified as part of the Development Agreement announced on 25
June 2015 (defined terms as per that announcement). The Company
continues to work closely with experienced industry executive Rob
Shepherd, and a highly experienced team of Technical Advisors who
have extensive experience in Indonesia on the Due Diligence process
associated with those assets. Following the identification of this
portfolio of assets, the Due Diligence process was expedited with
the signing of the Development Agreement on 25 June 2015. This
process is ongoing and progressing in line with Management's
expectations. In addition, a shortlist of other separate future
deals has been identified and screening of these deals is ongoing.
Whilst no timeframe can be given for the completion of this
process, the Board emphasises the importance of conducting a
thorough process to ensure the assets can provide the potential to
underpin the future growth of the Company and can be acquired on a
fair valuation.
Under the terms of the Development Agreement, the Company made
an advance payment under commercial terms of GBP500,000 (the
"Payment Advance") to UTAS to allow the JV to progress the due
diligence and possible funding arrangements for the potential
transactions. These monies are being spent most prudently and the
conservation of cash remains a key priority for the Company. The
Company and Mr Shepherd are wholly focussed on achieving a
successful outcome with regards to the Development Agreement
however subject to the findings of the ongoing Due Diligence
process, there can be no guarantees that the acquisition of the
identified assets will be completed on terms that are suitable to
the Company. In the event the Development Agreement is terminated,
any unspent funds made under the Payment Advance will be repaid to
the Company.
Assuming a successful outcome to the Development Agreement and
other conditions associated with conclusion of the Ellerton Claim,
Mr Shepherd intends to join the Company as Chief Executive Officer
together with a number of additional highly-qualified Non-Executive
directors who have been identified.
Update on Litigation
Further to the update on Litigation on 25 July 2015 regarding
the Ellerton Claim in the United States District Court for the
District of Colorado and the Ellerton Bankruptcy Petition in the
United States Bankruptcy Court for the District of Colorado, the
Company announces that it will be asserting counterclaims this week
against Mr. Ellerton and his affiliates in the District Court. The
Board is wholly confident that it has a strong case against Mr,
Ellerton, and will be aggressively pursuing these claims on behalf
of Sefton's shareholders. The Court will be holding an initial
Scheduling Conference on 31 August 2015. Sefton's position is that
Mr. Ellerton's claims are automatically stayed given his filing of
the Bankruptcy Petition, and that he may not pursue them at this
time. Further, Sefton believes that its own claims are not stayed
under the provisions of the Bankruptcy Code, and that Sefton may
prosecute them at this time.
In any event, the Company has moved to dismiss the Bankruptcy
Petition, and maintains that the Petition was filed in bad faith.
The Company is confident that it will be successful in this regard,
and is seeking to recover its attorneys' fees, costs, and
compensatory or punitive damages. The Company will provide an
update to shareholders once the Courts have clarified the
situation.
Raylene Whitford, CFO, commented:
"The past couple of months has been a challenging period for
Sefton and its shareholders. Whilst we continue to make significant
progress with regards to the Development Agreement and remain
confident that it represents the potential future of the Company,
we are well aware that a number of near term challenges remain
which need to be resolved in order to move forwards. We are fully
focussed on concluding the Ellerton Claim with a satisfactory
outcome, divesting the Kansas Assets on terms that are acceptable
to our shareholders and improving the all-round reputation of the
Company. We believe our shareholders deserve to be rewarded for
their patience and emphasise that the Board is doing all it can to
stabilise the Company and move forwards with clarity and
confidence."
Visit www.seftonresources.com or contact:
Raylene Whitford, Chief Financial Officer Tel: 0207 872 5570
Nick Harriss, Nick Athanas, Allenby Capital Tel: 0203 328 5656
Limited (Nomad)
-------------------
Nick Bealer, Cornhill Capital (Broker) Tel: 0207 710 9612
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Ben Romney, Buchanan (PR) Tel: 020 7466 5132
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This information is provided by RNS
The company news service from the London Stock Exchange
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