29th Sep 2015 11:12
LONDON (Alliance News) - Mosman Oil and Gas Ltd Tuesday said it has secured an extension from Origin Energy Ltd concerning the proposed acquisition of a stake in the South Taranaki Energy Project assets in New Zealand.
Mosman said Origin has agreed to provide an extension to Mosman to allow the company to provide reasonable financing assurance that Mosman can raise the funds to acquire a 70% stake in the assets.
Earlier in September, Mosman signed a conditional deal to acquire a stake in the producing onshore gas licences in New Zealand for around GBP4.2 million, which it will then develop via a still-to-bed-agreed joint venture.
Since that deal, Mosman has raised GBP1.5 million in a placing of 33.3 million shares at 4.5 pence per share and said it would combine the proceeds with the NZD4 million royalty funding - equivalent to GBP1.7 million - it secured in September, and the 5% deposit it has paid.
The extension provided by Origin on Tuesday will allow Mosman to finalise the documentation concerning the royalty funding agreement, it said.
In addition, the participation agreement with WRDLS Pty Ltd, the company's 30% joint venture partner in the acquisition, has also been extended on the same basis.
Mosman shares were down 7.6% to 5.08 pence per share on Tuesday.
By Joshua Warner; [email protected]; @JoshAlliance
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