Vane Minerals is moving into shale gas exploration in Germany and changing its name to Rose Petroleum.
The deal to buy a company with two exploration licences will be completed in the fourth quarter if those licences are renewed. An initial non-refundable payment of €300,000 will be made if shareholders vote to allow the issue of additional shares at a general meeting on 15 August. A further €100,000 payment will be made on renewal of the licences. That will be when the deal is completed. The licences are subject to an overriding royalty interest (ORRI) of 2.5% of gross sales, less certain costs.
The first licence covers an area that includes two oilfields and four main targets have been identified. There are also two oilfields in the second licence area.
Vane is raising £1.4m at 0.4p a share, conditional on shareholder approval at the general meeting. Vane is seeking to sell its uranium interests and seeking a partner for its US copper interests. At the beginning of 2012, the US government withdrew from uranium exploration one million acres of land in Arizona. Vane has claimed damages. Vane’s current revenues come from its Mexican gold and silver interests. In 2012, Vane reported a profit of £54,000 on revenues of £5.76m.
Matthew Idiens became chief executive earlier this year. Philip Jeffcock, who has been a director of 3Legs Venture Capital, is joining the board.
At 0.4p a share, up 0.07p, Vane is valued at £3.17m.
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