30th Aug 2019 09:41
(Alliance News) - Mining investment firm Spitfire Oil Ltd on Friday said it has relinquished its retention licence over the Salmon Gums lignite tenements in Australia and is now a cash shell.
Shares in Spitfire were down 19% at 2.50 pence in London in morning trade.
Spitfire said its decision was due to "the current and long term forecast for the continued relatively low oil prices and the continuing costs of maintaining the retention licence".
In relinquishing the licence, Spitfire becomes a cash shell under AIM rule 15. It must make an acquisition constituting a reverse takeover by the end of February 2020 or have its shares suspended.
"The directors are considering suitable projects for acquisition by the company," Spitfire said.