- South Pacific Resources will sell its Papua New Guinea assets to acquire Singapore based company Takmur Pte
- The transaction includes: 20 to 1 share consolidation, a capital raising of $14 million under a prospectus and a change in activities under the listing rules
- The company wants to go into the minerals industry
- South Pacific will sell Papua New Guinea to Ana and Belle
South Pacific Resources will sell its Papua New Guinea assets to acquire Singapore based company Takmur Pte.
As part of the transaction, South Pacific will seek shareholders approval for a 20 to 1 share consolidation, a capital raising of $14 million under a prospectus and a change in activities under the listing rules.
Takmur has a mineral sands tenement and production facility which includes a premium quality mineral sands deposit in Indonesia.
The Transaction will result in a change the company’ activities from an oil and gas exploration and production company to mineral sands exploration and production company.
South Pacific will conduct a 20 to 1 consolidation of its existing issued capital. This will reduce the issued capital of the South Pacific to approximately 18,284,711 fully paid ordinary shares.
The company will acquire Takmur via the issue of 210,274,171 (post-consolidation) at an issue price of 40¢ per share to the shareholders of Takmur.
South Pacific will seek to raise $14 million through the issue of 35,000,000 shares for 40¢ per share.
The Capital Raising will be used to further develop the mineral sands tenement in Indonesia and production facilities and look to acquire upside in other projects within the mineral sands industry.
Given the low price of oil and the lack of commercial prospectively, the company has entered an agreement with Ana and Belle Pty to sell its Papua New Guinea.
On completion of this transaction, South Pacific will change its name to Pyx Resources Limited.
Oliver B. Hasler will be the proposed Chairman and CEO.
ASX has discretion in deciding whether or not to re-admit the company to the official list and to quote its securities and therefore the transaction may not proceed if ASX exercises that discretion.