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Wednesday, June 23, 2010
Artumas Group, Inc. has signed an agreement with Wentworth Resources Ltd. to purchase 100% of the outstanding shares of Wentworth in exchange for the issue of up to 32,956,000 shares of Artumas depending on the total number of outstanding Wentworth shares in issue on closing of the agreement being up to 49.7% of the company.
Under the deal the exchange values Artumas shares at 3.25 NOK, a premium of approximately 25% to the current market price. In addition, for each share being issued to Wentworth, Wentworth’s shareholders will receive 0.5 Warrants of Artumas which will be convertible at 4.25 NOK on or before June 30, 2012.
On completion, Artumas will receive proceeds of between $8- $13.2 million in cash net of transaction costs which is expected to be sufficient to meet the company’s ongoing obligations over the coming year. Included in the proceeds is the $1.5 million loan provided by Wentworth to the company in May 2010.
The purchase is subject to certain conditions precedent typical to a transaction of this nature.
The company will in due course change its name to Wentworth Resources Ltd.
President and CEO Cameron Barton said “We are delighted to finalize this transaction with Wentworth Resources which for the first time in two years puts the Company on a strong financial footing and provides us with the means to concentrate on adding value to the Company’s valuable underlying assets rather than survival. The Company owns exciting exploration assets in what is becoming a key focus area for the international oil and gas industry and the expertise of the Wentworth Directors in gas monetization will add to the Company’s drive for commercialization of the gas reserves in Tanzania."
In affect, the deal is really a coup for both companies; Artumas has barely kept itself from going under over the past couple of years and will now add needed capital resources, while Wentworth will gain an East African portfolio.
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