21 Oct 2020 07:00
21 October 2020
Red Emperor Resources NL
Quarterly Activities and Cashflow Report
For the Period ended 30 September 2020
The Board of Red Emperor Resources NL (ASX/AIM: RMP) ("RMP", "Red Emperor" or the "Company") provides the following commentary on its activities and an Appendix 5B for the quarter ended 30 September 2020.
Corporate
During the quarter, Red Emperor continued to evaluate potential deal opportunities in the global oil and gas market. While mainly focused on exploration projects, the Board have been very mindful of protecting the Company's balance sheet and by extension, shareholder value. A number of projects considered during the quarter continue to remain of interest and the Company anticipates being able to update the market and its shareholders further during the current quarter to 31 December 2020. Over the past 6 months, the oil price has somewhat stabilised after dipping sharply, particularly towards the end of April 2020, however global uncertainty due to COVID-19 continues to be the industry's biggest challenge.
AIM Rule 15 cash shell status
On 7 August 2020, the Company announced that, pursuant to the relinquishment of the Western Blocks on the North Slope, Alaska, as announced on 24 July 2020, the Company had become an AIM Rule 15 cash shell.
As an AIM Rule 15 cash shell, the Company is required to make an acquisition, or acquisitions, which constitute(s) a reverse takeover under AIM Rule 14, or alternatively seek re-admission to trading on AIM as an investing company pursuant to AIM Rule 8, within six months from 21 July 2020, failing which the Company's ordinary shares will be suspended from trading on AIM pursuant to AIM Rule 40 and cancelled from admission to trading on AIM if such a transaction has not been completed within a further six month period thereafter.
Financial Commentary
The Quarterly Cashflow Report (Appendix 5B) for the period ending 30 September 2020 provides an overview of the Company's financial activities and can be viewed at the following link: http://www.rns-pdf.londonstockexchange.com/rns/6769C_1-2020-10-20.pdf. The Company is in a strong financial position with A$4.4 million in cash at the end of the quarter. This will be sufficient to fund corporate costs well into 2021 and also facilitate the identification, evaluation and potential acquisition of new ventures and opportunities.
Payments for administration and corporate costs amounted to A$195k and related to costs incurred in respect of and associated with directors' fees, listing and compliance, insurance and legal and consulting fees. The aggregate amount of payments to related parties and their associates included in the quarter's cash flows from operating activities was approximately A$72.5k (please refer to Table 1).
For further information, please visit www.redemperorresources.com or contact:
Red Emperor Resources NL - Greg Bandy | +61 8 9212 0102 |
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Strand Hanson Limited (Nominated Adviser) - James Harris |
+44 (0) 20 7409 3494 |
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Brandon Hill Capital (UK Broker) | +44 (0) 203 463 5010 |
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708 Capital Pty Ltd (Australian Broker) | +61 (0) 2 9112 2500 |
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014.
Table 1: Payments to Related Parties of the Entity and their Associates
Item | Current Quarter (A$) | Previous Quarter (A$) |
Directors' Remuneration |
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Managing Director's Fees and Superannuation | 49,275 | 49,275 |
Non-Executive Director Fees and Superannuation | 8,213 | 8,213 |
Company Secretarial and CFO Fees | 15,000 | 15,000 |
Total payments to related parties of the entity and their associates | 72,488 | 72,488 |