Scandinavian Oil-Gas Magazine
http://www.scandoil.com/moxie-bm2/financial/money/xtract-resources-signs-royalty-buy-back-agreement-.shtmlXtract Resources signs Royalty Buy Back agreement on Julia Creek Tenements
Xtract has signed a Royalty Buyback Option exercised by Global Oil Shale Group Plc (GOS Group). GOS Group has exercised its option to buy back the
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Xtract has signed a Royalty Buyback Option exercised by Global Oil Shale Group Plc (GOS Group).
Key Points
◾ GOS Group has exercised its option to buy back the 1% net smelter royalty as stipulated in the Royalty Agreement between GOS Australia and Xtract dated 16 December 2012 ◾ The buy back price is time related and exercise at this time values the option at ◾ AUD 1,000,000 ◾ The option exercise provides Xtract with a further ordinary share allotment in GOS Group of 1,371,365 shares at a current GOS Group share price of 40p, a significant increase from the 11p share price at the original transaction date ◾ GOS Group has undertaken to issue the Royalty Shares to Xtract within 7 days of the day of the signed agreement ◾ On the issue of the shares the Royalty shall be extinguished ◾ Xtract will hold 7,371,365 shares in GOS Group, with an additional 1.5 million to be issued if, as is intended, GOS Group lists on a recognised Stock Exchange ◾ The issue of the Royalty Shares will result in Xtract holding 7.6% of the current issued share capital of the GOS Group
