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Ascent Resources

  • BY: Andrew Hore |
  • POSTED: 04/08/2014 |

Oil and gas explorer Ascent Resources has still not received any of the £15m it is expecting from Global Power Sources.

The cash was to be received in two tranches - £11.7m and £3.3m – at 0.8p a share and the first tranche has not been paid. GPS had previously acquired Ascent’s Italian business, and it was going to end up with 53.1% of Ascent after the two subscriptions. GPS had claimed that it had secured the finance required from wealth management firm WRS (Salomon Werner HAB Privee Ltd). GPS has started legal proceedings against WRS.

The deadline for the receipt of the cash has passed . GPS still owns 21.1% of Ascent and the relationship still appears to be good. Ascent can seek alternative funds. There is already the opportunity to draw down £3m of 2014 convertible loan notes and this could start at the end of August. 

The plan was to use £7.4m to buy back up to 50% of the 2013 convertible loan notes at 300p each. The other 50% were to be converted at 0.5p a share.

The remaining £7.6m was earmarked to bring phase 1 of the Petsovci project in Slovenia into production. Ascent has enough available funds to go through the permitting process. Additional funds will be sought after this is completed.

Ascent still hopes to generate cash from the project in the first quarter of 2016. The NPV10 of the asset is more than €15m.

At 0.48p a share, down 0.05p, Ascent is valued at £6.97m.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFJuly2014_58.pdf

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