Gunsynd PLC Update on Oyster Oil and Gas (0739V)
29 November 2019 - 6:00PM
UK Regulatory
TIDMGUN
RNS Number : 0739V
Gunsynd PLC
29 November 2019
Gunsynd plc
("Gunsynd" or the "Company")
Update on Oyster Oil and Gas
Gunsynd Plc (AIM: GUN, NEX: GUN) announces it has today entered
into a binding term sheet ("Term Sheet") with Sajawin Pty Limited
("Sajawin") to conditionally sell all of the 333 shares Gunsynd
holds in Oyster Oil and Gas Limited ("Oyster BVI") as set out below
(the "Transaction"):
a) Sajawin shall pay to Gunsynd the sum of A$39,151
(approximately GBP20,000) in clear funds within 5 working days of
the signing of the Term Sheet.
b) In consideration of the sale of the shares in Oyster BVI to
Sajawin, it will undertake to pay Gunsynd the sum of A$457,647
(approximately GBP240,000) of which 80% is to be paid within 5
working days of completion of the Transaction ("Completion") and
20% is to be paid within 60 days of Completion.
The Transaction is conditional, inter alia, on a number of
significant conditions precedent ("Conditions Precedent"), which
include:
i. completion of due diligence on Oyster to the satisfaction of
Sajawin;
ii. the completion by Sajawin of a reverse takeover of an ASX
company;
iii. completion of an equity capital raising generating at least
A$1.5 million of free cash by Sajawin; and
iv. receipt of various waivers and regulatory approvals,
including the extension of its 100% participating interest in the
Block 1101 Production Sharing Contract held by Oyster Madagascar
Limited, the 100% owned subsidiary of Oyster BVI.
Under the Term Sheet, another shareholder in Oyster BVI is also
selling shares in BVI. Should the Transaction complete, Sajawin
will hold approximately 55% of Oyster BVI.
If the Conditions Precedent are not met by 30 April 2020, any
party may terminate the Term Sheet. There can be no certainty that
the Transaction will proceed.
Sajawin is proposing to raise funds in conjunction with the
Transaction in the ASX reverse takeover mentioned in ii. above and
Gunsynd has agreed to subscribe for A$200,000 of shares to be paid
for from the consideration set out in b) above. Gunsynd has agreed
not to sell these shares for a period of one year following the
subscription.
The Production Sharing Contract for Blocks 1, 2, 3 & 4 in
the Republic of Djibouti are not included in the Transaction and
will be transferred to a party of Northbay and Gunsynd's choosing
on or before Completion.
The information contained within this announcement is deemed by
the Company to constitute Inside Information under the Market Abuse
Regulation (EU) No. 596/2014.
The Directors of Gunsynd accept responsibility for this
announcement.
For further information please contact:
Gunsynd plc
Hamish Harris +44 20 7440 0640
Cairn Financial Advisers LLP
James Caithie / Liam Murray +44 20 7213 0880
Peterhouse Corporate Finance
Lucy Williams +44 20 7469 0930
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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