24th May 2016 08:32
LONDON (Alliance News) - Mosman Oil & Gas Ltd on Tuesday said it has bought a 20% stake in Canadian-based junior exploration company GEM International Resource Inc for CAD400,000.
The investment forms part of a CAD1.2 million placing by GEM at a price of 5 cents per share, and there is a attached non-transferrable 15 cent two-year warrant, Mosman said.
Mosman is now one of GEM's largest shareholders. It is anticipated that one of Mosman's directors may join the GEM board, although no final decision has been made yet.
GEM recently entered into a binding letter of agreement with Gems International Ltd for an option to acquire 92% of its Gems International's shares, which would give GEM a 92% interest in 45% of the Dala diamond exploration project in Angola.
Dala is an early stage mine project with potential for the discovery of both alluvial and kimberlite diamonds deposits, Mosman said.
"With current prevailing market conditions in the oil and gas sector, the board has expanded its horizon, reviewing investment opportunities in the broader resources arena. Whilst the board continues to evaluate interesting opportunities in the oil and gas sector, the investment into GEM is at a pivotal point in its development and the board is confident of the potential GEM's stake in the Dala diamond project will deliver," Chairman John Barr said in a statement.
Shares in Mosman were trading up 13% at 0.760 pence on Tuesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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