BPC is reversing into Falkland Gold and Minerals.
In January 2008, FGML said that it had failed to find economic mineral deposits. It stopped work in the Falklands and looked to acquire a new business. At the end of June 2008 FGML had net assets of £3.6m – most of which was cash.
BPC invests in offshore oil exploration in the Bahamas. It has identified 22 leads and the enlarged group’s cash will help to fund further exploration. It expects to start drilling in 2012.
Six FGML shares will be issued for each BPC share, which will leave BPC shareholders with 90% of the company.
RAB Capital owns 79% of FGML and 53% of BPC. It will end up with 55.5% of the enlarged share capital. It says that it won’t sell 25.5% of the company for at least 12 months after the reverse takeover takes place. The remaining 30% stake won’t be sold for 12 months without the written consent of Ambrian, BPC Ltd’s nominated adviser.
The directors will end up with 21.2% of the enlarged company.
FGML shares rose 0.5p to 4p each, which values the current share capital at £3.13m. The shares being issued for BPC are worth £28.5m at the current share price.
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