5th Apr 2016 06:44
LONDON (Alliance News) - Nostra Terra Oil & Gas Co PLC on Tuesday said it has secured an extension to the deadline by which it must complete the acquisition of an interest in the Permian Basin of New Mexico.
Nostra Terra struck a deal to acquire a 60% stake in producing assets within the basin from Alama Resources II LLC for USD3.0 million, but said late last week it was negotiating an extension to the deadline by which it was due to make an initial payment of USD2.7 million.
Nostra Terra was expected to make that payment before the end of March, but has now been given until April 29 to make it, with the remaining USD300,000 still due to be paid a year after the deal has been closed.
Importantly, Nostra Terra has had to issue 118.6 million new shares in the company to Alamo at a price of 0.10 pence each in order to secure the extension, with those shares worth GBP118,600 representing around a 3.1% of Nostra Terra's enlarged issued capital. That 0.10 pence issue price is 38% higher than Nostra Terra's closing share price of 0.067p on Monday.
However, Nostra Terra also said the USD2.7 million to be paid on closing will be reduced by USD130,000, meaning that has edged down to under USD2.6 million.
"We're pleased to have been granted the extension by the seller as we continue to progress towards closing, where we anticipate the acquisition will be financed with debt," said Nostra Terra Chief Executive Matt Lofgran.
By Joshua Warner; [email protected]; @JoshAlliance
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