(Alliance News) - Gunsynd PLC said Friday it has agreed to sell its holding in Oyster Oil & Gas Ltd to Sajawin Pty Ltd for about GBP260,000.
Shares in Gunsynd were down 17% in London on Friday afternoon at 0.012 pence each.
Gunsynd and Sajawin have agreed to a term sheet, where Gunsynd is selling its 333 shares in Oyster.
Sajawin will pay Gunsynd AUD39,151, about GBP20,000, within 5 days of the signing of the term sheet. Then Sajawin will owe Gunsynd AUD457,647 if the transaction completes.
The transaction is conditional on Sajawin completing due diligence on Oyster; Sajawin completing a reverse takeover of a company on the Sydney stock exchange; and Sajawin completing a AUD1.5 million equity raising.
Gunsynd noted it has pledged to subscribe for AUD200,000 in shares as part of Sajawin's reverse takeover on the ASX.
If the deal goes through, Sajawin will own about 55% of Oyster.
Gunsynd also noted Oyster's production sharing contract for Blocks 1, 2, 3 and 4 in the Republic of Djibouti are not included in the deal and will be transferred to another company.
By Paul McGowan; paulmcgowan@alliancenews.com
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Gunsynd (GUN)