The Tony Sage-led International Goldfields has entered a $152 million scrip deal to acquire a 50 per cent stake in an oil and gas block in Kazakhstan.
In what it describes as a "company making" transaction, International Goldfields will issue 675.97 million escrowed shares and 135.2 million options to UK company Eastern Petroleum Corporation.
In return, International Goldfields will acquire a 50 per cent interest in the Alakol Basin licence block in eastern Kazakhstan, which has the potential to contain large oil fields.
The deal is valued at more than $152 million, a steep discount to an independent valuation of the 50 per cent stake of $559 million, International Goldfields said.
The acquisition comes as International Goldfields wraps up the sale of its 15 per cent stake in the Tubatse platinum project in South Africa to Nkwe Platinum for $60 million.
International Goldfields will receive an initial $9 million payment, which will be used as financial backing to finalise negotiations for the Kazakhstan acquisition, it said.
International Goldfields is also finalising details of a proposed $20 million institutional placement.
Shares in IGC climbed 3.5 cents to a high of 25.5c before easing to 23c at 15:44 AEDST.
