26th Oct 2018 16:22
LONDON (Alliance News) - Mosman Oil & Gas Ltd on Friday said Gem International Resources Inc will relist on the Toronto Stock Exchange if a letter of intent is finalised.
Shares in the exploration and production company were down 6.9% at 0.42 pence on Friday afternoon.
Mosman said that Gem, its investee company, is well advanced in the process of finalising the letter of intent with a third party. Should this occur, Mosman said, Canadian diamond miner Gem will be "relisted and revitalised".
A relisting also has the potential to allow market visibility on Mosman's investment in Gem. Mosman said that, until relisting, it cannot quantify the value of its shares in Gem or assess the recoverability of its USD100,000 loan to Gem.
In February, Mosman replaced all of Gem's directors with its own nominees due to dissatisfaction with Gem's performance and with the board itself. Mosman Chairman John Barr was among the newer board appointments.
At present, Mosman is unable to estimate the likelihood of finalising the letter as key conditions have yet to be satisfied.
"The revitalisation of Gem continues albeit in difficult circumstances. Through the progress at Gem our aim is that in the fullness of time Mosman will be able to recover its equity investment in Gem and loan funds," said Barr.
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