04/09/2015 - 10:11

Dempsey to make shift to oil

04/09/2015 - 10:11

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Dempsey Minerals has announced a change in direction with a proposed acquisition of a local unlisted oil explorer, in a deal valued at about $2.6 million.

Dempsey to make shift to oil
Oil in a mud pit of a recent geothermal well in the Alasehir licence area.

Dempsey Minerals has announced a change in direction with a proposed acquisition of a local unlisted oil explorer, in a deal valued at about $2.6 million.

Dempsey, which currently explores for phosphate and mineral sands, will acquire Petroz in exchange for 33 million shares.

It will also offer 16 million performance shares, subject to the completion of certain milestones.

If the deal goes ahead, Dempsey will issue Petroz shareholders 4 million of its shares and will complete a $590,000 capital raising through the issue of about 7.4 million shares at 8 cents each.

“The funds will be used to fund the administrative costs of the acquisition including the costs of assessing the business, operations and prospectus of Petroz for due diligence purposes, advisers’ fees, for working capital and, if the option is exercised, to cover the costs of seeking shareholder approval for the acquisition and the costs of achieving re-compliance with ASX re-listing rules,” the company said in a statement.

Petroz is an unlisted public Australian company which has recently been awarded an oil licence in Turkey, with its Turkish partner Petrako.

Dempsey shares have been suspended from trade since August 20.

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