04/06/2014 - 13:40

Exploration companies shift focus

04/06/2014 - 13:40

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Red Gum Resources and White Star Resources are the latest exploration companies to shift focus away from the resources sector, signing deals to move into geospatial imagery and internet travel bookings respectively.

Exploration companies shift focus

Red Gum Resources and White Star Resources are the latest exploration companies to shift focus away from the resources sector, signing deals to move into geospatial imagery and internet travel bookings respectively.

Red Gum has entered into a binding heads of agreement to acquire 100 per cent of the issued capital of the Perth-based Holiday Planet for an undisclosed amount.

If the acquisition is approved, Red Gum will change its name to Australian Travel Group, changing its focus from minerals exploration.

In order to fund the acquisition, Red Gum will undertake a capital raising of at least $3 million.

The capital raising is intended to have a priority pool of $1.5 million allocated to Holiday Planet’s 50,000 Australian customers.

Red Gum plans to use the funds to invest in information technology and fund development of new online booking engines to improve customer service.

It will also be used to increase penetration into the Australian east coast and Singaporean domestic markets.

White Star has entered into a conditional agreement to acquire Spookfish, a geospatial imagery company that focuses on high-resolution imagery solutions for the government and corporate sectors.

Spookfish is in the process of testing the first phase of its linear-asset capture capability, which represents a technical proof-of-concept step that will confirm the viability of future development stages.

The Spookfish technology aims at increased levels of resolution and accuracy for geospatial imagery, full 3D and oblique imagery and complete end-to-end solution with web portal delivery at reduced costs.

White Star is yet to complete due diligence, but has received firm commitments for a $1.35 million capital raising through the issue of 108 million shares at 1.25 cents a share, putting the company in a cash position of $4.15 million.

Following an up-front payment of $250,000, 160 million ordinary shares will be issued to Spookfish, with further shares to be issued subject to Spookfish reaching certain revenue targets.

White Star also has the right to acquire a 12.5 per cent equity interest in Spookfish for $1 million, which will be funded by the $1.35 million capital raising.

White Star has received firm commitments for the full capital raising, which is managed by Alto Capital, Forrest Capital and Ventnor Capital.

Alto Capital has acted as adviser to Spookfish for the transaction.

Red Gum’s share price rose by 12.5 per cent to 0.9 cents at 1:30pm WST.

White Star’s share price rose by 50 per cent to 2.4 cents at 1:30pm WST. 

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