27th Jan 2014 09:24
For immediate release
27 January 2014
Frontier Resources International Plc
("Frontier" or the "Company")
Completion of Equity Swap and Payment Acceleration
The Board of Frontier (AIM Ticker: FRI), is pleased to announce that the Company's broker has today conditionally placed with institutional investors YA Global Master SPV Ltd's ("YA Global") current entire holding of 8,138,325 ordinary shares in the Company ("YA Global Placing").
On 19 June 2013 the Company had entered into an equity swap agreement with YA Global. Separately YA Global agreed to subscribe for 8,333,333 of the Company's Ordinary Shares (the "Equity Swap Shares"). Under the equity swap agreement, YA Global agreed to make 15 monthly settlement payments of £33,333 each to the Company, subject to adjustment to reflect the price of the Equity Swap Shares sold by YA Global at such time. The Company had the right at any time to accelerate the payments due under the equity swap by procuring subscribers for all the Equity Swap Shares held by YA Global: The Company has exercised this right today as the Directors believe that given the next stage in the Company's development, it would be in the Company's best interests to accelerate and terminate the equity swap agreement now.
On completion of the YA Global Placing, YA Global will make a single final payment to the Company and the equity swap agreement will then terminate. The funds will be used by the Company to provide additional funding for the Group's exploration activities.
The issued share ordinary share capital of the Company remains unchanged at 110,055,505 Ordinary Shares. The Equity Swap Shares were placed at 2.6 per Ordinary Share.
Enquiries:
Frontier Resources International Plc | |
Jack Keyes, Chief Executive Officer | Tel: +1 (713) 962 0887 |
or | |
Barbara Spurrier, Finance Director | Tel: 020 3475 8108 |
Beaumont Cornish Limited (Nomad) | |
Michael Cornish / Roland Cornish | Tel: 0207 628 3396 |
WH Ireland Limited (Joint Broker) | |
James Joyce / James Bavister | Tel: Tel: 0207 220 1666 |
Beaufort Securities Limited (Joint Broker) | |
Christopher Rourke / Guy Wheatley | Tel: 020 7382 8300 |
Yellow Jersey PR Limited (Financial PR) | |
Dominic Barretto | Tel: +44(0) 7768 537 739 |
or | |
Anna Legge | Tel: +44 (0) 7747 788 221 |
A copy of this announcement is available from the Company's website www.friplc.com
About Frontier:
Frontier Resources International Plc, which was founded in April 2008, is focused on onshore oil and gas exploration and development in the Middle East and Southern Africa where the Company has technical knowledge and expertise. The Company currently has three exploration projects in Oman, Zambia and Namibia.
Frontier's immediate objectives are to continue developing its core exploration projects towards first production particularly in Oman where the Company's knowledge base is most advanced because of the proximity to producing oil and gas fields and the availability of existing seismic and well data.
The Company is incorporated in the United Kingdom with its registered office in London. It also maintains a technical and commercial office in the United States in Houston, Texas. Additionally, to support its regional operations in Southern Africa and the Middle East, offices are maintained in Namibia, Zambia and Oman.
The Company's shares were admitted to AIM of the London Stock Exchange on 5 July 2013.
ENDS
Related Shares:
CPT.L