Leyshon Resources Limited Update - Separation of Energy and Mineral Assets (7715Q)

TIDMLRL

RNS Number : 7715Q

Leyshon Resources Limited

18 October 2013

Leyshon Resources Limited

18 October 2013

UPDATE - SEPARATION OF ENERGY AND MINERAL ASSETS

Further to the announcement of 13 September 2013, Leyshon Resources Limited (AIM/ASX: LRL) ("Leyshon" or the "Company") wishes to advise that it continues to work on the demerger of its energy assets into Leyshon Energy Limited along with cash reserves of approximately US$35 million. The company now anticipates that the requisite shareholder meeting to approve the demerger will be held in late November 2013. A notice of meeting/circular will be posted to shareholders in due course.

The Company also wishes to advise that it is now intended that Leyshon Energy Limited will only apply for admission to trading on AIM, and not on both ASX and AIM as previously announced. The rationale for this and details of the risks associated with the demerger will be included in the notice of meeting/circular.

The proposed demerger will involve an in-specie distribution of shares in Leyshon Energy Limited to eligible shareholders of the Company. For those shareholders who are deemed by the Company to be ineligible because they reside in jurisdictions where the distribution is prohibited or would in the Company's opinion impose undue burdens on the Company, the corresponding Leyshon Energy Limited shares will be sold by the Company and the net proceeds returned to the shareholder. Further details will be included in the notice of meeting/circular.

For further information please contact:

Leyshon Resources Limited

Paul Atherley - Managing Director

Tel: +86 137 1800 1914

admin@leyshonresources.com

Cantor Fitzgerald Europe

David Porter/Rick Thompson (Nominated Adviser)

Richard Redmayne (Corporate broking)

Tel: +44 (0)207 107 8000

Pelham Bell Pottinger

Charles Vivian /James MacFarlane

Tel:+44 (0)20 7861 3232

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 overtook the United States as the world's largest energy consumer in 2010, however on a per capita basis it still only consumes about 25% of the energy of the most developed nations. The government has recently described the country's increasing dependence on foreign energy sources as one of the "Grave challenges to energy security".

Its main policy response to this challenge is the rapid development of domestic unconventional gas resources, with a particularly focus on the Eastern Flank of the Ordos Basin. The aim is to rapidly increase the output of unconventional gas from the currently very low levels to an annual production of 6.5 billion cubic metres by 2015.

Leyshon, along with its partner China National Petroleum Corporation, is one of small number of companies exploring for and looking to develop unconventional gas production in the Eastern Flank of the Ordos Basin.

This information is provided by RNS

The company news service from the London Stock Exchange

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