Leyshon Resources Limited Completion of Acquisition (4151I)
July 25 2012 - 2:00AM
UK Regulatory
TIDMLRL
RNS Number : 4151I
Leyshon Resources Limited
25 July 2012
LEYSHON RESOURCES LIMITED
25 July 2012
Completion of Acquisition Of Stake In China's Unconventional Gas
Revolution
Leyshon Resources Limited (AIM/ASX:LRL) ("the Company") is very
pleased to announce that it has signed a definitive share sale and
purchase agreement for the acquisition of Hong Kong Company Pacific
Asia Petroleum Limited (PAPL) which holds a 100% interest in the
Zijinshan Production Sharing Contract located on the eastern fringe
of the prolific Ordos Gas Basin in Central China.
Leyshon has acquired PAPL from Houston based CAMAC Energy Inc
for a consideration of US$2.5 million in cash and the issue
10,000,000 fully paid ordinary shares.
The Company is not intending to seek the approval of security
holders for the transaction unless ASX requires it under Listing
Rule 11.1.2 or 11.2, and is applying to ASX for a determination as
to whether security holder approval is required under the Listing
Rules.
Managing Director Paul Atherley Commented: "The Ordos Basin is
the beating heart of the world's fastest growing major economy and
is one of the best places in the world to be exploring for gas
right now. Any commercial discovery will be hooked into one of the
major arterial pipelines that cross the basin. We are particularly
excited about PAPL commencing drilling on one of few remaining
blocks on the basin's eastern flank - an area that has seen
spectacular recent discoveries."
PAPL's key asset is a 100% interest in the Zijinshan Production
Sharing Contract ("PSC").
The Zijinshan PSC is with PetroChina Coal Bed Methane Company
Limited (PCCBM) which is a subsidiary of China National Petroleum
Corporation, the country's largest integrated energy company.
PCCBM has retained the right to buy back a 40% interest in the
contract at the completion of the exploration phase and to jointly
fund the project into production.
Strong Cash Position
At quarter end the Company had A$51.0 million in cash, and is
due A$0.7 million in term deposit interest for a total of A$51.7
million (GBP 33.5 million). This is equivalent to A$ 21 cents per
share (14 pence per share).
Admission to AIM
Application has been made for the 10,000,000 new ordinary shares
to be issued pursuant to the acquisition to be admitted to trading
on AIM. Admission is expected to occur on 31 July 2012.
As at 30 June 2012, PAPL had net assets of US$120k, carried
forward losses of US$9,889k and, for the six months ended 30 June
2012, reported no turnover and a loss of US$791k.
Newsflow
Further announcements will be made when the exploration
programme is finalised, to be followed by the commencement of
drilling along with updates on the progress and results from the
drilling and testing programme.
For further information please contact:
Leyshon Resources Limited
PaulAtherley - Managing Director
Tel: +86 137 1800 1914 patherley@leyshonresources.com
Seymour Pierce
Jonathan Wright (Nominated adviser)
Richard Redmayne (Corporate broking)
Tel: +44 (0)207 107 8000
Background
http://www.leyshonresources.com
Leyshon was on the ground in 2003 when China opened its mining
sector to foreign investment. It has been fully engaged in China
since then and has its main operating office located in
Beijing.
China's latest Five Year Plan emphasizes the planned
urbanisation of a large number of Central China's rural population
into second and third tier cities lifting the urbanisation rate to
51.5% of the overall population.
This will result in significant increases in infrastructure
spending and energy demand. The Company is planning to invest in
high quality energy assets in China to meet this growing
demand.
Managing Director Paul Atherley is an Executive Committee member
of the China Britain Business
Council and serves on the European Union Chamber Energy Working
Group.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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