18th Feb 2014 09:52
LONDON (Alliance News) - CEB Resources PLC Tuesday said it plans to acquire up to a 49% stake in Carbon Investment Soo, which controls the the rights to the advanced, high grade Mariola Thermal Coal Project in southern Poland.
The firm said the investment in Carbon Investment will be used to fast-track the development of Mariola which is a substantial advanced thermal coal deposit near Katowice, Poland.
CEB said for the year ended December 31, 2013 Carbon Investments made a loss of USD25,000.
The acquisition will be structured as three separate tranches of investment with the future tranches of investment at the election of CEB.
The first part comprises an initial stake of 10% of the shares of Carbon Investment for GBP200,000 in cash plus 20 million CEB shares payable within 30 days of signing the deal. At the closing price of 0.715 pence per CEB share on February 17, this equates to a total consideration of around GBP343,000.
Within six months of signing the deal, at the election of CEB a further 10% stake in Carbon Investment, totalling 20% for GBP400,00 in cash plus a further 20 million CEB shares.
Within 12 months of signing the agreement, at the election of CEB a further 5% stake in Carbon Investment, totalling 25%, for GB500,000 in cash plus those CEB shares to make Carbon Investment a 19.9% shareholder in CEB.
Thereafter, CEB has the right to increase its shareholding in Carbon Investment to 49% on commercial terms to be agreed between the parties.
The maximum total consideration that may be payable by the company under the agreement, including the market value of any CEB shares which form part of the consideration, is capped at GBP1.4 million.
The stock was trading at 0.700 pence Tuesday morning, down 0.015 pence or 2.1%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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