PERSIAN GOLD, the Irish AIM-listed gold and precious metals explorer, has agreed to acquire all of the outstanding shares of unlisted Hydrocarbon Exploration plc.
Three directors of Persian Gold – John Teeling, James Finn and David Horgan – are also directors of Hydrocarbon. Collectively they own approximately 11.5 per cent of Hydrocarbon, which is a UK-registered company.
Hydrocarbon Exploration assumed the US and Bolivian assets of Pan Andean Resources when the latter company was acquired by Petrominerales in April 2010.
The offer is a related party transaction under AIM rules and requires the remaining director, Dr Manouchehr Takin, following consultation with the company’s nominated adviser, Cairn Financial Advisers, to consider whether the acquisition is fair and reasonable insofar as Persian shareholders are concerned.
Persian Gold has conditionally offered to buy all outstanding Hydrocarbon Exploration shares from existing shareholders on the basis of 2,500 new shares of Persian for every one Hydrocarbon share held.
At the current Persian share price of 6.75p, this values Hydrocarbon at approximately £4.3 million (€5.19 million). A spokesman said it was anticipated that Persian would undertake a placing of new shares to raise sufficient working capital for the enlarged group.
As part of the arrangements described, the enlarged group will change its name to Clontarf Energy plc.
Persian requested that dealings in its shares be suspended pending publication of an admission document.
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