18th Aug 2023 10:39
(Alliance News) - Argos Resources Ltd on Friday said it is still awaiting approval from the Falkland Islands government to dispose its PL001 production licence interests in the North Falkland Basin to JHI Associates Inc.
The Falkland Islands-based oil and gas exploration company expects to receive consent from the Falkland Islands government "shortly", with completion of the transaction now anticipated by the end of next month.
In order to facilitate this, Argos Resources and JHI have signed an addendum to the licence acquisition agreement to extend the long stop date for completion to September 30.
Argos Resources now intends to seek shareholder approval for the company to be wound up and a liquidator to be appointed ahead of cancelling Argos Resources shares from trading on AIM in London.
This is conditional on the disposal completing, Argos Resources said.
In early May, Argos Resources announced the deal with JHI in return for primarily new JHI shares, as part of a move to wind up the company.
Assuming completion of the deal for the company's sole asset for a holding in JHI, the directors believed that it would be in the best interests of the company and its shareholders to seek shareholder approval for cancellation.
This was approved by Argos Resources shareholders at a general meeting in late May.
Shares were later suspended from trading in early July, which is expected to remain in place until cancellation occurs.
Argos Resources said it is preparing to publish a circular and notice of a meeting to convene the general meeting on winding up the company, with these documents expected to be posted to shareholders at the end of the month.
By Greg Rosenvinge, Alliance News reporter
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