(Alliance News) - Argos Resources PLC on Friday said that it had entered a licence acquisition agreement with JHI Associates Inc to sell its interests in the North Falkland Basin in return for JHI shares as it prepares to cancel its trading.
Shares in the Falkland Islands-based oil and gas exploration company focused on the North Falkland Basin fell by 17% to 0.38 pence in London on Friday.
JHI Associates is a Canada-based oil and gas exploration company that focuses on frontier exploration in the Guyana-Suriname Basin.
Argos Resources said that following the completion of the licence acquisition agreement, its sole asset would be a holding in JHI shares. Argos Resources therefore concluded that it would be in the company and shareholders' interests to seek shareholder approval for the cancellation of trading on AIM.
The disposal remains subject to the Falkland Islands government which has to consent to the transferral of the licence.
Argos Resources said it does not expect the licence to be agreed before July 2023, and that its cancellation on AIM will take place after June 30, as previously announced on May 30.
Cancellation instead will take place with effect from July 3.
Argos and JHI have signed a deed of variation to the licence acquisition agreement which extends the long stop date for completion to August 18.
Argos Resources said it would notify a definitive timetable for cancellation as soon as was practicable, following the completion of the licence acquisition agreement.
By Will Neill, Alliance News reporter
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