5 Jul 2012 13:46
5 July 2012 Red Emperor Resources NL ("Red Emperor" or the "Company") Completion of Option Exercise and Underwriting
Red Emperor Resources NL is pleased to announce that the Company has completed the issue of 7,500,000 fully paid ordinary shares to raise gross proceeds of $2,250,000. The new shares relate to unlisted options exercisable at 30c which expired on 30 June 2012.
Funds raised from expiring options will be used for expenditure on its Projects and general working capital. Application has been made for the resulting 7,500,000 new ordinary shares to be admitted to trading on AIM.
The Directors had been interested in a total of 4,500,000 options which lapsed unexercised, comprising: Greg Bandy (3,000,000), Jason Bontempo (1,000,000) and Stephen Brockhurst (500,000). No economic benefit accrued in favour of the Directors as a result of this procedure.
Following admission of these shares, the Company will have 266,234,221 ordinary shares in issue. The Company holds no shares in treasury and each share carries one vote. This figure may be used by shareholders in the Company as the denominator for calculations by which they will determine if they are required to notify their interest in, or a change to their interest, under the Disclosure and Transparency Rules.
For further information please visit www.redemperorresources.com or contact:
Red EmperorGreg Bandy +61 8 9225 2826Rebecca Sandford +44 20 7025 7040Fox-Davies Capital Limited (Nominated Adviser and Joint Broker)Barry Saint +44 20 3463 5010
Daniel Fox-Davies / Richard Hail +44 20 3463 5000
Old Park Lane Capital plc (Joint Broker)Luca Tenuta / Michael Parnes +44 20 7493 8188Tavistock CommunicationsEd Portman +44 20 7920 3150Background
Red Emperor Resources NL is a natural resources exploration company with interests in the frontier state of Puntland, Somalia and the Republic of Georgia.
* In Puntland, Red Emperor holds a 20% working interest in two licences encompassing the highly prospective Dharoor and Nugaal valleys. These two exploration areas cover over 36,000km2. Horn, the operator and 60% interest holder, has completed drilling the first well (Shabeel-1) in a two well program and has now spudded the second well (Shabeel North). Target Depth for Shabeel North is 2,400m with the primary target being Upper Cretaceous Jesomma sands, which had good oil and gas shows and 12 - 20m of potential net pay in the Shabeel-1 well 3.5 kilometers to the south. Shabeel-1 will be flow tested following completion of Shabeel North. * In the Republic of Georgia, Red Emperor has a 20% working interest in onshore blocks VIa and VIb, covering approx. 6,500km2. Joint Venture partner Range Resources Limited previously funded a 410km 2D seismic program with independent consultants RPS Energy identifying 68 potential structures containing an estimated 2.045 billion barrels of undiscovered oilâ€"inâ€"place (on a mean 100% basis) with the first (Mukhiani-1) of two conventional exploration wells having spudded in July 2011. The Joint Venture is now focussing on a revised development strategy that will target low-cost, shallow appraisal drilling of the contingent resources around the Tkibuli-Shaori ("Tkibuli") coal deposit, which straddles the central sections of the two blocks.
XLON