18 Aug 2023 07:00
18 August 2023
ARGOS RESOURCES LIMITED
("Argos" or "the Company")
Update on Disposal and Cancellation
Argos Resources Limited (AIM: ARG.L), provides an update on the proposed disposal of the Company's PL001 Production Licence interests in the North Falkland Basin to JHI Associates Inc. ("JHI").
On 3 May 2023, Argos announced that it had entered into a Licence Acquisition Agreement ("LAA") with JHI, pursuant to which JHI would acquire Argos' PL001 Production Licence interests in the North Falkland Basin (the "Licence") in return for consideration primarily comprising new JHI Common Shares (the "Disposal"). Assuming completion of the LAA, the Company's sole asset would be a holding in JHI Common Shares and in this scenario the Directors believed that it would be in the best interests of the Company and its shareholders to seek shareholder approval for cancellation of the admission of the Ordinary Shares to trading on AIM ("Cancellation"). The Disposal and the Cancellation were approved by Argos' shareholders at a general meeting of the Company held on 26 May 2023.
The Disposal remains subject to the Falkland Islands Government ("FIG") providing its consent to the transfer of the Licence. FIG's consent to the transfer has not yet been received and is expected shortly, with completion of the LAA now anticipated by the end of September 2023. To facilitate this, Argos and JHI have signed an addendum to the LAA to extend the long stop date for completion to 30 September 2023.
General Meeting
In the Company's circular dated 3 May 2023 (the "Circular"), the Board confirmed that it intended to take the necessary actions for the Company to be wound up and for the JHI Common Shares to be distributed to the Company's shareholders on the register of members at the relevant time.
The Board now intends to seek shareholder approval for the Company to be wound up and a liquidator appointed ahead of the Cancellation, but conditional on the LAA completing. To facilitate this, the Company is preparing to publish a circular and notice of meeting to convene the general meeting, with these documents expected to be posted to shareholders on or around 31 August 2023.
Suspension of Trading
Trading in the Company's ordinary shares on AIM was suspended on 3 July 2023 ("Suspension") and the Suspension is expected to remain in place until Cancellation occurs. The Company will continue to make announcements in accordance with its obligations under the AIM Rules.
Cancellation of Admission to Trading on AIM
The Company will notify a definitive timetable for Cancellation as soon as practicable, following completion of the LAA.
Further details on the Disposal and Cancellation are set out in the Circular, which is available on the Company's website www.argosresources.com.
For further information:
Argos Resources Limited (+500 22685)
www.argosresources.com
Ian Thomson, Chairman
John Hogan, Managing Director
Cenkos Securities PLC
Neil McDonald (+44 131 220 6939)
Derrick Lee (+44 131 220 9100)