22nd Aug 2025 10:28
(Alliance News) - Cloudbreak Discovery PLC on Friday said it has agreed the sale of its US oil assets on the Masten Unit energy project in Texas to G2 Energy Corp.
The London-based natural resource project generator and royalty business will receive GBP50,000 upon signing the final contracts, and a further GBP50,000 over the next five months.
The deal also removes an immediate GBP75,000 outstanding liability from Cloudbreak's books.
This follows the company's announcement in May that it has refined its investment and acquisition strategy in the high value minerals sector. Cloudbreak said it would focus on exploration and development assets, specifically those that are near term revenue or project pivots.
Cloudbreak at the time said it was in talks with G2 to determine the best method of increasing oil production capacity at the Masten project. The firm in May provided G2 with a USD2 million debenture on a two-year term in exchange for a 3.25% overriding royalty interest in the project. It noted G2 has continuously produced oil for more than two years, with current production at 30 to 40 barrels per day.
Cloudbreak also on Friday said it has raised GBP300,000 through a placing of 120 million new shares at 0.25 pence each from a single institutional investor.
Funds will be used to "accelerate" growth, as Cloudbreak pursues more "highly prospective" gold ground in Western Australia.
Shares in Cloudbreak Discovery were up 14% at 0.32 pence in London on Friday morning. This brings the stock 5.3% higher over the past year.
"The sale of these assets and the new funds raised will allow the company to focus on its very exciting gold exploration activities in Western Australia at its new Darlot West gold project, where we recently announced some excellent gold grades from its initial exploration programme. Western Australia is a Tier-1 gold exploration jurisdiction, and we are focused as a board to leverage off our exciting Darlot West assets to grow a portfolio of significant gold related projects in the state," said Cloudbreak Managing Director Tom Evans.
"This sale of the US asset brings in cash and removes any future liabilities from the balance sheet. New funds in sterling from asset sales and financings is an important leverage tool for Australian gold exploration, as the British pound buys over 2 Australian dollars in today's money and that can fund a lot of on-ground exploration. We want to use the fact we are a London listed company operating in sterling to really make an impact in Western Australia. This gives us a good competitive edge when competing for assets there and spending money on the ground."
By Emily Parsons, Alliance News reporter
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