Zoltav Resources Plans To Acquire CenGeo Holdings
Zoltav Resources Inc announced the proposed acquisition of CenGeo Holdings Ltd for US$26 million or about 17.4 million pounds satisfied through the issue of about 473.16 million new Zoltav shares at 3.5 pence per share.
CenGeo Holdings, through its wholly owned subsidiary ZAO Siberian Geologicheskaya Kompanya or “SibGeCo”, holds the Koltogor Licence located in the Khantiy-Mansisk region of western Siberia. The Koltogor Licence contains the undeveloped Koltogor oil field.
CenGeo is a private company of which Valentin Bukhtoyarov is the beneficial majority-owner. CenGeo recently acquired SibGeCo and successfully obtained a new 25 year exploration and production licence covering the Koltogor oil field.
Zoltav noted that it has also entered into a conditional agreement with its largest shareholder, ARA Capital Limited, to provide US$20 million or about 13.4 million pounds of working capital to fund the future work programme on the Koltogor Licence. As per the terms of the agreement, ARA Capital will subscribe for new ordinary shares in the Company at a price of 3.5 pence per share. ARA Capital has also given an undertaking to convert its 500,000 pounds convertible loan prior to publication of the Circular and to vote in favour of the resolutions at the EGM.
Upon the completion of the Acquisition and the full ARA Subscription and conversion of its loan it is expected that ARA Capital will own 45 per cent of the enlarged issued share capital of Zoltav and Mr Bukhtoyarov, through his company Bandbear, will own 29.1 per cent.
