Monday, June 30, 2008

Australian exploration company acquires assets in BVI- and UK-based corporations worth US$44 mln

Australian exploration company Newland Resources Ltd. has entered into an agreement to acquire share of assets US$44mln worth from the private investment company Pacific International Management Inc. According to the letter of intent signed by the companies, Newland will acquire 50% stock of Zeus Petroleum Ltd, UK-based petroleum exploration company, and 26% of South American Ferro Metals Ltd, a British Virgin Islands-registered company which owns iron ore assets in Brazil.

Newland attributed value of US$32 mln to 50% interest in Zeus, while 26% interest in the BVI company was said to be worth US$12 mln.

Consideration for the proposed acquisition is the issue of 28 million Newland shares to Pacific, and US$30 million of 5 year convertible notes with a coupon rate of 8%, at $0.50 per Newland share.